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Default on National Debt Will Create 20 Million Consumer Goods Manufacturing Jobs

In the first two years of US default on the national debt, 20 million manufacturing jobs will be created, considering the fact every country on the planet will stop trading with the USA.

It makes sense to default while we're still the #1 super power; even though we're the most indebted nation on the planet, it's not currently affecting our super power status. Later on it will. Any country that objects can't do a damn thing about it because we'll blow them off the planet with our military if they do. We can save money on defense by closing some of our 900 military bases we don't need.

The US government corporation simply files for bankruptcy protection and re-organizes.

In the mean time we build TV Factories, Shoe Factories, Cell Phone Factories, Toaster and Small Appliance Factories, and every manner of consumer goods factories peoples hearts desire. Everyone who wants a job will have one.

National default and bankruptcy will be the greatest jobs program in history.



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Default now!

Default now!

The time to default is now.

The time to default is now. With Food stamps cut off, we need to find jobs to feed 50 million Americans cut off from food stamps.

We'll have a new industrial age.

Be Careful What You Wish For.....

In the first two years of US default on the national debt, 20 million manufacturing jobs will be created, considering the fact every country on the planet will stop trading with the USA.

Aren't you forgetting something? International trade is a two way street. Probably true that a US default on the national debt would render many, maybe even most, US companies non-creditworthy enough to purchase goods and services from foreign countries. By extension it also means that foreign firms and countries would not purchase goods and services from us. I don't think we want to go there because one of the reasons why the great depression of the 1930s was so intractable was largely owing to the collapse of international trade triggered by the Smoot Hawley Tariff Act of 1930.

Ed Rombach

We transition to bilateral

We transition to bilateral trade agreements where China trades $100 billion with us and we trade $100 billion with them.

We could put the Fed under

We could put the Fed under threat of military force and make them print the interest payment for the national debt.

This is an Excellent Topic That Need Discussion

What is the national debt of the United States? Roughly 17 trillion dollars, a lot of money to be sure. What makes up the debt?

According to this website (see: http://useconomy.about.com/od/monetarypolicy/f/Who-Owns-US-N... ), there are two main categories: intragovernmental holdings and debt held by the public.

The public (e.g., foreign governments, U.S. state governments, Wall Street, banks, individuals, etc.) owns about 10.x trillion and the various U.S. federal departments (e.g., social security trust fund, DOT, HHS, etc.) own 6.x trillion.

What is the interest on the national debt? According to this website (see: http://www.usgovernmentspending.com/federal_budget_detail_20... ), its about 222.x billion for fiscal 2013.

If Congress doesn't raise the debt ceiling, the U.S. Treasury will not be able to make current interest payments due on outstanding debt or issue new debt (treasury bills, notes, bonds) to raise money.

The treasury has options such as suspending the interest due on intragovernmental holdings debt. This does not suggest stopping social security payments, medicare, medicaid, etc. but merely the interest due and credited to those internal government accounts.

However it is critical to continue to pay the 222.x billion owed to the public. Paying interest owned to the public will demonstrate to the foreign and national investment markets the U.S. will honor its debts.

But there still is the issue of the budget deficit, currently at 972.x billion. Again, selectively reducing certain spending should get us close to closing the budget gap. We all know that every budget has "padding" and the U.S. government is no exception.

For example:

1. Suspend Foreign Military Aid (save 15.x billion).
2. Suspend Defense Related Activities (save 7.x billion).
3. Reduce Foreign Economic Aid by 50% (save 20.x billion).
4. Reduce Conduct of Foreign Affairs by 50% (save 8.x billion).
5. Reduce Atomic Energy Defense Activities by 50% (save 9.x billion).
6. Reduce Central Fiscal Operations by 50% (save 5.x billion).
7. Reduce General Services by 50% (save 7.x billion).
8. Reduce Other Spending by 50% (save 70.x billion).

That alone reduces the budget deficit by 141.x billion. The Department of Defense, Education, Welfare, Protection, etc. all can be trimmed even further to balance the budget.

It is doable but it takes willpower and leadership. Does the congress and/or the president have what it takes? Doubtful, in my opinion.

When the financial systems

When the financial systems collapse, and government locks down the country, the military industrial complex will be handed over to global authorities. Our military will be kept away until that time, so that foreigners can come in and assist our government in controlling the population so that there will be as little rebellion from US military personnel as possible.

Never having to default on the debt is why we have the Fed

Never having to default on the debt is why we have the Fed. Look, the world is full of suckers. We are enjoying cheap imported goods, and the rest of the world gets our debt in return. Who's in trouble? Not us! As long as the sucker keep trading our debt, I mean, dollars, for real finished products and keep buying our debt, I mean, treasuries, in exchange for their own hard-earned money, we're sitting pretty!

The fun ends only when they realise we've screwed each and every one of the six billion seven hundred million other souls on planet earth.

"Cowards & idiots can come along for the ride but they gotta sit in the back seat!"

We could put the Fed under

We could put the Fed under threat of military force and make them print the interest payment for the national debt.

We have to overhaul government regulations first

If they dont do that they will nationalize everything. Which is more likely in this scenario.

Séamusín

A default is likely - it would benefit Americans

I recently wrote a somewhat lengthy post on this and haven't seen a reasonable argument against it.

http://www.dailypaul.com/299538/the-beauty-of-petrodollars?p...

Nixon defaulted under very similar circumstances in 1971 but Kissinger's petrodollar scheme prevented a circle the wagons scenario. This time the stakes are exponentially higher and there doesn't appear to be a workable plan for an alternative. The rest of the world has had it up to here with American hegemony and aren't going to take it anymore.

The US could default on all foreign owned debt and repudiate all foreign held reserves of US dollar, currently approx $8T out of $11T total. The unchallenged military might of the US would enforce such a default and dissuade any unhappy customers from ill-advised aggressive moves against the homeland.

American owned treasury debt and corporate bonds could still be honored. American owned foreign assets would no doubt be lost. Like you say, Americans could do very well in such a development, once the extremely chaotic and probably violent transition was over. My guess is the pervasive surveillance state has been created to deal with exactly this eventuality.

This is a total shtf scenario and extremely unlikely. Global elites would have to be defied and that possibility seems remote. Still, it is interesting to think big is it not?

Disclaimer: I do not advocate any part of the above imaginary scenario.

I refined the content a bit.

I refined the content a bit.

We should default on the

We should default on the national debt while we're still a super power.

which derivatives specifically?

.

Virtually all of them.

Virtually all of them.

I know what their really

I know what they're really worried about is the quadrillion derivatives market blowing up. But what the heck, perception is reality. It's only default on the debt.