Found this a while back,it looks as if there is no attempt to reign in spending and if this debt ceiling is raised the end result could be worse than any recession yet known. In a previous thread i stated that China could ride out any consequence of USA defaulting,it turns out that China 'owns' a vast amount of American debt. The global economy is an "house of cards" just waiting for someone to sneeze.
Costing $40.000 Per Second! It’s hard to grasp if anyone can grasp an amount so vast as a single Trillion? & yet the American’s are in debt by x14 of them? Analysts and powerful people are stating it’s going to get much worse soon due to their commitments already made to other financial building schemes and contracts some that should not of been cleared?
And as we know here in the UK this weeks we have seen Jane Norman shops go under as well as Habitat and Moben kitchens all in one week? possibly making many thousands of people out of work? Is this the recession on the bounce back to us or did we ever get out of it in the first place?
God help us all if the government don’t sort this mess out real soon? Here in Grantham some 25 shops have closed in recent months & it’s getting like a ghost town for shops & yet the business leaders for the council are stating things are on the up? Oh really?
This gives more in depth. 2012 may refer to an "economic" end of the world rather than a physical one.!?
Yeah and this all started from the banks i believe? and yet they are STILL getting their huge bonuses & i hardly hear anything about them on the news anymore?
When i stated above that "God help us all if the government don’t sort this mess out real soon" i wasnt implying that the uk goverment are to blame for what is happening more that they should kick the bums of the banks and instead of looking for figures that look good on paper or in the media they need to start making money available for high st businesses that are struggling and small/new businesses too all i see is schemes like "Project Merlin" that was hugely hyped up but is failing disastrously to give any real money out? why is it when these kinda projects start they seem to be not a lot more then hype to everyone?
It is very serious now with Greece yet again on the balance and Portugal/Spain in the same boat? then Ireland not gaining anything from their bailout? i think if one of the countries went "Pop" which is now a VERY realistic chance! as you have well explained "The global economy is an "house of cards" just waiting for someone to sneeze" too add to that i would seriously say that there is a lot of sneezing powder in the air and its not going to blow away! NOT this time.
morning Autoschediastic, Well it is to be expected when some bigwig chooses to call the initiative "Project Merlin".I would suggest using a character out of mythology is the ultimate in "smoke and mirrors". The global asset strippers have these countries circled and Greece will suffer far worse than we did when our "jewels" were sold.I am not saying that "nationalisation" is the solution but that the price they will pay when their industry is sold at rock bottom prices may engender a far more serious upheaval than the lame protests we had over privatisation. They know how to "rock and roll".To think that Croatia is wanting to join the club.
Daz "Croatia" Really.?? Its looking very bleak and with America well and truly struggling now i just cant see an happy ending to all this? so sorry to be negative i cant see enough is been done to prevent this dropping off a cliff edge! as i am now thinking these governments talk the talk but there is NO walking been done here! I often go and use some of the small shops in this town and i get a bit of banter going with them some who have had their shops of decades and i ask them hows business almost 100% of them say they are well and truly struggling and they are NOT able to get any sort of support from the banks or the goverment! its a mirror image Everywhere i go & it well frustrates me to know how much of our money is been sent or used abroad when we need it most!
News just in! TJ Hughes are today filing for the administrators!
[Jane Norman shops go under as well as Habitat and Moben kitchens all in one week]
It is just the start and will get worse.
As we have less to spend we are careful where we spend it.
Supermarkets with their high prices are an example.
People will now shop around using the likes of Aldi's and Netto for cheaper food. But they are not daft the more customers they get in the higher they will put their prices.
I have been to Grantham about a month back and did notice the amount of shops that were closed.
It used to be quite a good shopping area but all that has changed.
Rates and Rents go up and shops that were already struggling can't survive.
I am afraid this is only the beginning and things can only get worse.
buteman "Here Here" yet again i totally agree with you! Grantham is just about to loose a large JJB store they have a store which is about two or three units and its in the prime location, M&S pulled their plug a couple of months ago here & like ive stated the local business leaders are saying its on the up??
A lot of the companies now going into administration are lucky to have lasted as long as they did.
Look at Jane Norman's debt, £140m. That hasn't just been accrued in the last couple of years. They've been in debt for many years, but have managed to keep up the interest payments, now things are a bit tighter they're having trouble with the interest payments, so the banks are foreclosing. Debenhams looked at buying them, but there's nothing of worth in the business.
Southern Cross is another example. Why anyone thought that selling your buildings and leasing them back was a good idea wants their bumps felt. And just where are the billions raised from the property sales?
It's survival of the fittest at the moment, and the companies that are doing well at the moment are the ones that have been big for years, not the ones that expanded to much, too fast, during the boom times...
Back onto the original point though
I've long been concerned about the US national debt, but a bit like the banks, the US has been considered too big to fail.
Now though, seeing as China holds a vast amount of this debt, things are a bit more precarious. I have a feeling that the US may me force to be a bit more humble in future when it comes to foreign policy. They can't be throwing their weight around against Chinas friends in the middle and far east if China holds lots of treasury bonds, all they need to do is threaten to call for payment and whoever is in the White House, be it Democrat, Republican or Tea Pot, they'll have to back down...
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