Barack Obama warns of 'economic Armageddon'

[GiftedDomains]

http://www.heraldsun.com.au/business/obama-warns-of-economic-armageddon/story-fn7j19iv-1226101082532

---

so what are the scenarios?

what will happen in US in your opinion?

and how will this affect the domain industry?

are you already observing negative effects on your dom biz?

etc.

 

[alien51]

"Yes We Can".

 

[pick.pk]

This is all planned.

 

[maxeaus]

The US is like a drug addict, addicted to credit and borrowing beyond their means, I highly doubt they can do whats needed to successfully enter the rehab clinic let alone leave cured of the actual addiction.

Expect the can to be kicked down the road, how far will it be kicked? who knows, nothing more can be expected from such weak willed politicians.

I expect i will be flamed for these comments by some but its the cold hard truth.

 

[wot]

NONE of the politicians will allow this to go come to fruition,they will not want to be known as those that caused yet another economic crash and risk their political futures and all the perks that go with it!

Look for a compromise solution in the next few days.

 

[enlytend]

The immediate issue at hand is how to pay off debt that was already incurred.

The debt will be paid - I could be wrong, but I don't think any of them are insane enough to let the country default, that would be a total catastrophe. But right now both sides are playing "chicken" trying to use the situation to force their own agendas. That disgusts me. Put the partisan cr*p aside, avert the crisis, THEN sit down and discuss it like rational adults (or am I asking too much?)

As for overspending "addiction" *, just about 10 years ago the country had a budget surplus. Ask yourself "what happened?"


*(Would a chorus or two of "Rehab" be in poor taste here?)

 

[GiftedDomains]

NONE of the politicians will allow this to go come to fruition,they will not want to be known as those that caused yet another economic crash and risk their political futures and all the perks that go with it!

Look for a compromise solution in the next few days.

i agree with this.
while i think that republicans would love it to see a disaster under obama's presidency, they know very well that this disaster would not be limited to current leadership, but would include the whole country (including the republicans).

but even if they find a compromise, the problem is only solved for a short period of time. this debt problem is a serious issue for US.

 

[GiftedDomains]

A visualization of US debt

http://www.wtfnoway.com/

 

[ExampleName]

"Yes We Can".

That's a cheap blow.

You can say that all you want when something negative happens, but I doubt you say it when something positive occurs.

You can do that with anything.

 

[richface]

I hope you don't mind me weighing into this. Raising the debt Ceiling has been routine since when? All of a sudden the republicans care about spending? Remember Bush? Give me a break! This is more of a political strategy to weaken Obama before the next election. I am conservative and I do believe in cutting spending deep but republican strategy is clearly not in the interest of the US economy. especially pushing through a bill today that is most certainly going to be rejected by the senate puzzles me. Time wasting. I guess the side to blink first will have to give in .

 

[dna]

we shouldn't raise the debt ceiling at all.
Its the only way to stop all the irresponsible borrowing.
I just hope that Speaker Boehmer doesn't wimp out on us again.

 

[DnEbook]

sorry friends but wars cost money

 

[abdussamad]

Well the US is done for. Maybe not immediately but that's where it's headed. China is going to be the new superpower. It's an interesting and dangerous time to be alive.

 

[GiftedDomains]

economy is much more complex than "us goes down, china rises up".

china needs usa for its exports. plus, usa owes china a lot of money.
they both need eachother.

plus, if us goes down, the impact on world economy would hit each and every country (europa, china, india, etc.).

like it or not, if us goes down, we all go down lol
so lets hope that they can fix this.

 

[interestedenough]

What will happen at the end of the day is the same thing that happened with the debt after World War II: It will be taken care by Global inflation -- or economic growth - this is the economists half empty/full glass of water. However, the economic instability pressure put by partisan politics who hold the US economy hostage because they want the president out is a big problem.

I do however agree with the ultraconservative factions in the US that taxes should be low, BUT whenever the US decides to waste money and lives on frivolous wars (Iraq = $1+ Trillion), we should put the burden of war on direct taxes, then maybe we would understand that wars: 1. Cost money, 2. Cost lives, 3. Wars make us ALL poorer.

 

[abdussamad]

Well we already have inflation in just about every country outside of Europe/USA/Canada. Inflation in Asia is pretty bad and has been for a couple of years now. Commodity prices have increased as a result of the dollar's depreciation and we've felt it a lot more than you guys in the rich countries. More inflation is going to be very very bad for the world. We've already seen what happened in the middle east due to high food prices. Imagine what will happen on a global level if inflation increases further? It'll be disastrous.

---------- Post added at 10:55 PM ---------- Previous post was at 10:52 PM ----------

BTW I should like to add that the world is now going to be diversifying away from the USD. The US govt. has scared everyone with their talk of a default so over the course of the next decade or so we'll see a move away from the USD as the world's reserve currency. It may even happen sooner. Maybe within 5 years.

 

[Kokoro]

3. Wars make us ALL poorer.

Well, this is not entirely true and it is surely not the way politicians think. What they think is that these wars are like medium and long term investment to benefit own country (and as a result to make us all richer). This is how the brute real ugly policy works. And the rest is just propaganda to keep voices.

Remember that:
Who controls oil, controls economy
Who controls economy, controls whole world

Sounds tempting, isn't it? The stake is really high especially now when China is joining the game.

 

[aceeca]

As for overspending "addiction" *, just about 10 years ago the country had a budget surplus. Ask yourself "what happened?"

The most recent time when US was in surplus was in the 19th century.

I don't have link for that, but to debunk the myth of surplus before Bush:

http://www.whitehouse.gov/infograph...gov&utm_medium=shorturl&utm_campaign=shorturl

 

[Domagon]

In the view of some, the whole debt ceiling situation gives both parties a way to push through reductions in some entitlement (ie. Social Security) and safety-net programs (ie. Medicaid) with less public revolt...

Anyone doubting the above possibility need only look at how the government temporarily this year (don't be surprised if it's continued beyond that) reduced Social Security tax withholding for employees (employers still pay their full portion) from 6.2 percent to 4.2...

Kinda strange for the government to cut Social Security tax withholding at the same time the Social Security fund is under strain unless the end-game is to drastically reduce payouts / means-testing beneficiaries in the future.

With that said, the U.S. is rapidly becoming an economic banana republic with a relatively small very rich class and very large poor class with little in between. Many government services and the overall structure of the modern U.S. assumes there's a large middle class - take that away and the house of cards crumbles, as in is happening now...

So while the debt ceiling crisis is a contrived one, the underlying issues of a smaller, ever-shrinking middle class combined with out of control government spending is a very real one with few viable fixes beyond cutting entitlements and safety net programs; shifting more of the burden over to the states.

Ron

 

[richface]

is all a big great act for republicans and democrats to push their agenda.
a deal an the end of the tunnel is guaranteed. Study their false systematic approach to spending cuts and their reliance on rational argument is an illusion to fool to public while deals are done behind the scenes to appease the political clique. "This entire process is deceptive and I don't think everybody's being told the facts. Yesterday I pretty much put forth a conspiracy theory that we've been set up from the start, that we're a bunch of saps being played as saps." quoting Rush but my view is not from a source or rush, you can tell by the events taking place. These politicians behind the scenes play golf together and enjoy the same private member clubs they careless about cutting spending in my view.