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Here's A Way Of Dealing With Debt  
User currently offlineDougloid From , joined Dec 1969, posts, RR:
Posted (6 years 1 week 1 day 8 hours ago) and read 1620 times:

Why, be like Ecuador and just don't pay your bills.

http://www.reuters.com/article/etfNews/idUSN1254958620081212

5 replies: All unread, jump to last
 
User currently offlineGeekydude From China, joined Apr 2004, 401 posts, RR: 2
Reply 1, posted (6 years 1 week 1 day 7 hours ago) and read 1578 times:

Correa was invoking the concept of "Odious Debt", which is to a certain extent applicable to many Latin American countries who were ravaged by coups, revolutions and military dictatorships in the past decades. Defaulting on such debts may enjoy popular support to the chagrin of the creditors.

Dougloid, I know you're joking when you said "be like Ecuador and just don't pay your bills." But allow me to explain to everyone why the US never needs to or cannot resort to that route.

However appealing it may sound to a debt-over-eyeball country, unfortunately, the US does not have that option. First off, it's hard to make a convincing argument the US national debt is "odious". The presidents have been democratically elected by the people; and the government should have been representing the best interest of country and it's people all along. Therefore, there's no odious debt to speak about as far as the US is concerned.

Second, the debt owed by the US is almost entirely in US dollars. So really, the US does not need to default. In the worse case senario, the Federal Reserve would just crank up the printing machine and there you have freshly printed greenbacks for whoever owns the Treasury IOUs. Of course, there would most likely be a massive inflation, but it's a surefire why to wipe out the government debt. The parties taking a loss will be whoever owns US dollars and dollar denominated bonds. Thee invividual debtor would also be able to take adavantage and settle his/her debt with inflated dollars as well, all thanks to the Fed.

So, sorry, Ecuador is Ecuador; the US is no Ecuador.



FLIB 152 'heavy' low approach...Caution wake turbulance!
User currently offlineMD-90 From United States of America, joined Jan 2000, 8508 posts, RR: 12
Reply 2, posted (6 years 1 week 1 day 7 hours ago) and read 1565 times:

Quoting Geekydude (Reply 1):
The parties taking a loss will be whoever owns US dollars and dollar denominated bonds.

And 300,000,000 Americans.

[Edited 2008-12-13 12:28:10]

User currently offlineGeekydude From China, joined Apr 2004, 401 posts, RR: 2
Reply 3, posted (6 years 1 week 1 day 6 hours ago) and read 1541 times:



Quoting MD-90 (Reply 2):
And 300,000,000 Americans.

Depending on how much debt you owe.  Wink



FLIB 152 'heavy' low approach...Caution wake turbulance!
User currently offlineOA260 From Ireland, joined Nov 2006, 27312 posts, RR: 60
Reply 4, posted (6 years 1 week 1 day 5 hours ago) and read 1492 times:

Loopholes clear couple's debts

As more people find themselves in debt, one couple found loopholes in their credit agreements to avoid paying tens of thousands of pounds. But a High Court judge had the final word.

http://news.bbc.co.uk/1/hi/magazine/7716021.stm


User currently offlineDougloid From , joined Dec 1969, posts, RR:
Reply 5, posted (6 years 1 week 1 day 5 hours ago) and read 1471 times:



Quoting Geekydude (Reply 3):
Quoting MD-90 (Reply 2):
And 300,000,000 Americans.

Depending on how much debt you owe.

I brought this up for the purposes of discussion.

I like the concept of "Odious Debt " and if that would fly I'd repudiate my debts too.

Fact is, I worked for four or five years in the debt settlement business doing legal referrals until the drama got to be more than I wanted to deal with so I punched out in March.


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