October 5, 2013

10066537-default-of-usa-dollar-currency-concept-photoWell were back to norm now and do we have a dozy of a post today. Did you know that on if the US government shutdown continues that on Oct 17th the US will default on its debt payments? Now you’re sitting there going so what no big deal well that’s really not the case. What will happen first there will be no Social Security checks next treasury bonds will plummet and it just gets worse from there? I’m not sure how long all this will take but the bottom line is we won’t be the only ones affected the Chinese hold 11 % of our debt and the banks hold a large portion as well. The overall effect will be that the dollar you have in your pocket will be worth absolutely nothing because our money is not backed up by anything. I know your saying wait a minute is our dollar backed up by Gold? The answer to that is NO it’s not and hasn’t been for a long time. That’s what happens when you print money at the rate the government does. There will be worldwide depression like never before. Countries like North Korea and Iran are very likely to start using nuclear weapons since they won’t be able to buy food or sell their oil. Now do I think this will all come about I hope not but you should realize that at sometime in the future it will become a real possibility. The Governments of the world have to change the way they do business if we are to have a chance. Well that was depressing this is Flounder saying CIAO from Colombia.

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