Post: #1

So October 17th is the day the USA will potentially default on interest payments on debt. A lot of people think it could never happen, but apparently a lot of people in Poland in late October 1939 felt that war would never happen.

As a doctor, I'm also used to approaching complex problems with 'Hope for the best, but assume the worst.'

The default, if it comes, will possibly cause another Lehman brothers-style meltdown.

My plan for dealing with a possible default:
- I'm keeping a significant amount of cash in reserve. I expect the stock market to crash following a default, so if that happens I'm going to rush in and buy stocks cheap. If the economy rebounds, I'll be a rich man.
- I'm going to build a small stockpile of essential goods this weekend so that I can survive a while should the purchasing power of my currency collapse.

Is anyone else on the forum making contingency plans for Oct 17th? Any bright ideas on how to profit/survive a potential worldwide economic shockwave?

Post: #2

I'm quite sure the Treasury will just divert funds from elsewhere to pay the interest. If it doesn't, then they've unnecessarily screwed the US over. Then again... knowing the track record of "rational" government, it's probably best to prepare just in case.

Post: #3

I don't believe it will happen. The Govt shutdown will probably go all the way up to the 15th/16th, but there is just no way that they don't raise the debt limit. The impact would be unthinkable, certainly worse than Lehman Brother's collapse. Its affects would be felt worldwide.

Post: #4

Delete

Post: #5

Ah. Honestly I don't think this will happen, not now at least, the US pay their debt and exports with money they print, what happens is that if they have to print too much the currency can get devalued and lead to hyper inflation of prices. But this would be an extreme case, a bit like Weimar Germany 90 years ago.

Post: #6

At few posts above, the treasury has already been doing that since May. On Oct 17 that gig will be up and the US will have roughly 30 billion in cash left. Enough to last around 2 days. What happens after that is gone, no one knows. Won't be good for sure

Post: #7

It'll happen eventually. The sooner the better in my opinion, they just can't keep on kicking the can down the road, they need to see how really screwed up we are and deal with it head on. Not saying its a good thing, but its either deal with the problems right now, they're not going to ever fix them until people start feeling real hurt instead of pretending nothing is wrong. There's impending collapse coming with this false economy, its been warned for a few years, they never fixed the problems of the last economic collapse so here we are just treading more water.

Post: #8

What does this mean for people holding US dollars?

Post: #9

(10-07-2013 11:37 AM)Thomas the Rhymer Wrote:  So October 17th is the day the USA will potentially default on interest payments on debt. A lot of people think it could never happen, but apparently a lot of people in Poland in late October 1939 felt that war would never happen.

As a doctor, I'm also used to approaching complex problems with 'Hope for the best, but assume the worst.'

The default, if it comes, will possibly cause another Lehman brothers-style meltdown.

My plan for dealing with a possible default:
- I'm keeping a significant amount of cash in reserve. I expect the stock market to crash following a default, so if that happens I'm going to rush in and buy stocks cheap. If the economy rebounds, I'll be a rich man.
- I'm going to build a small stockpile of essential goods this weekend so that I can survive a while should the purchasing power of my currency collapse.

Is anyone else on the forum making contingency plans for Oct 17th? Any bright ideas on how to profit/survive a potential worldwide economic shockwave?

I explained this in another thread, any talk of default is pure fear-mongering: /thread-28593-...#pid550270

As mentioned in a previous post, the only reason that the U.S. government would default is if the Obama Admin/Treasury chooses to do so. The U.S. collects roughly 10x more per month in tax revenues than we owe in interest. Would there be an immediate, massive cut in government spending (roughly 40%)? Yes. Default? No.

Post: #10

(10-07-2013 12:01 PM)Roosh Wrote:  What does this mean for people holding US dollars?

Hondas full of Silver.

Post: #11

Guns and cash.

Post: #12

If this happens then the world goes down. The system collapses, that's it. Of course there will be niches here and there, but the Domino system is unrelenting...

Post: #13

That's a bit of a stretch. I'd say the U.S. is pretty far from defaulting and there are many, many alternatives. As mentioned above, it would be an unnecessary and intentional move, not one out of necessity.

Post: #14

What do you all think this means for real estate?

Post: #15

It won't happen, congress is just playing chicken to see how much they can get from the other group.

Why would politicians want to be out of a job? They will get together on the 16th or before, pass a budget, and raise the ceiling.

Buying gold is a lot like fiat currency, it's based on "belief. Maybe tomorrow people might find out gold causes dementia and gatorade is the best thing.....so gold will crash and gatorade will skyrocket.

Post: #16

(10-07-2013 02:36 PM)Cattle Rustler Wrote:  It won't happen, congress is just playing chicken to see how much they can get from the other group.

Why would politicians want to be out of a job? They will get together on the 16th or before, pass a budget, and raise the ceiling.

Buying gold is a lot like fiat currency, it's based on "belief. Maybe tomorrow people might find out gold causes dementia and gatorade is the best thing.....so gold will crash and gatorade will skyrocket.

Yeah at the end of the day, there wont be a default simply because of politicians self interest. They'd all rather have a good job, with possibility of cash on the side, then stick to their guns, fire themselves and bring the global economy crashing down.

Post: #17

Which "cheap stocks" are you planning to buy when they are at a low after potential collapse?

Post: #18

(10-07-2013 12:18 PM)Yano Wrote:  Guns and cash.

yeah, i was going to say "to prepare for the default, go buy a gun"

Post: #19

I got 10M in Iraqi Dinar. The dollar will tank, oil backed currency will rise and I'll rich!

TOP THAT MOTHER FUCKERS!

Post: #20

(10-07-2013 11:58 AM)PartyonBro Wrote:  It'll happen eventually. The sooner the better in my opinion, they just can't keep on kicking the can down the road, they need to see how really screwed up we are and deal with it head on. Not saying its a good thing, but its either deal with the problems right now, they're not going to ever fix them until people start feeling real hurt instead of pretending nothing is wrong. There's impending collapse coming with this false economy, its been warned for a few years, they never fixed the problems of the last economic collapse so here we are just treading more water.

Was discussing this a few nights ago. From what I understand, we default and say fuck the world , and everybody else follows suit. It would hurt but it is needed. Does anybody truely believe our Congress can fix the problem within the next five years? Cut and tax is the only way and they aren't willing to do either. Congress is too toxic and I don't see Clinton or Christy fixing the problem.

My only issue is what will happen to my dollar?

Post: #21

(10-07-2013 03:57 PM)TexasMade Wrote:  My only issue is what will happen to my dollar?

Short term: hyperinflation.

Long term: could be the best thing that happened to the dollar for all the reasons you mention.

Post: #22

Yeah, that's why its a pretty good time to get into a mortgage or in precious metals right now. If it doesn't come from a debt default it'll come from QE easing.

Post: #23

I don't think gold is that good of a buy right now, if anything it might be overvalued. Investing in foreign stocks mutual funds might not be a bad idea- so long as you think the company is sound and will grow in the long run already, it would only benefit from a usa currency crisis.

Other comodities, maybe US steel

Post: #24

what would happen to bitcoins? I assume they would sky rocket

Post: #25

The US will stop cutting SS checks before it stops paying interest on the debt. There will be no default.