The Conservative Cave

Current Events => Economics => Topic started by: Ptarmigan on October 14, 2013, 02:42:33 PM

Title: U.S. May Join Germany of 1933 in Pantheon of Defaults
Post by: Ptarmigan on October 14, 2013, 02:42:33 PM

U.S. May Join Germany of 1933 in Pantheon of Defaults
http://www.bloomberg.com/news/2013-10-13/u-s-risks-joining-1933-germany-in-pantheon-of-deadbeat-defaults.html

Quote

Reneging on its debt obligations would make the U.S. the first major Western government to default since Nazi Germany 80 years ago.

Germany unilaterally ceased payments on long-term borrowings on May 6, 1933, three months after Adolf Hitler was installed as Chancellor. The default helped cement Hitler’s power base following years of political instability as the Weimar Republic struggled with its crushing debts.

“These are generally catastrophic economic events,” said Professor Eugene N. White, an economics historian at Rutgers University in New Brunswick, New Jersey. “There is no happy ending.”

America may join Germany in defaulting. Germany defaulted because it had pay reparations from World War I as outlined by Treaty of Versailles.

Title: Re: U.S. May Join Germany of 1933 in Pantheon of Defaults
Post by: txradioguy on October 15, 2013, 03:00:47 AM

The only way default will happen is if the President and the SecTreas LIHOP.  And then they'll be in violation of the 14th Amendment.

Title: Re: U.S. May Join Germany of 1933 in Pantheon of Defaults
Post by: JohnnyReb on October 15, 2013, 04:41:03 AM

Well, we got a "Hitler" all we need now is default.