Tuesday, April 26, 2011

Debt = Default? Not Necessarily a problem (ZeroHedge)

A Debt Default is Not the Real Problem for the US

Phoenix Capital Research's picture

Many commentators are discussing the collapse of the US today. Indeed, the most common theme I see one of “it’s all over,” usually focusing on the math/ debt problems in the US.

Debt is a major problem, but it’s not always one that destroys everything.  History is replete with countries that defaulted on their debt… and the world kept chugging along regardless.

So, the idea that the US will default on its debt and we’ll somehow re-enter the stone age is false. Human ingenuity and survival skills are far better than that.  Indeed, the human race was in much worse conditions when we were hiding in caves and running from prehistoric monsters.

We somehow survived that situation and evolved to make peanut butter and jelly sandwiches and drive cars… so I’m sure we’ll figure out how to deal with the collapse of the US empire and the end of the Dollars status as world reserve currency.

So rather than freaking out about our debt problems, I think we need to address the real issue that LEAD TO our disastrous debt situation. And that issue in the the US today is that the people making the major decisions are not problem solvers but politicians.


No comments: