So the basic consequences with foreign investments in the US debt would result in...

  • investments in the US debt devalued
  • job losses throughout the world
  • prolonged or a double-dip global recession (less aid to poor nations)
  • spiked interest rates
  • deflation (though, stagflation can occur...anybody's guess)


What makes me wonder is why many of the people (or stereotypical/media-portrayed ones) are extremely reluctant and sensitive to paying more taxes to create jobs or support other people with lower economic statuses. I do understand that there are a lot of people out there who try to abuse benefits from the government for their own good, but I strongly believe that there are an equal, if not more, amount of that portion that really do need it to get through.

I also think that the US educational system should be revamped where students, starting from kindergarten or their first year, should be taught how to spend their money. I watched PBS a week ago called "Biz Kids" and it was a wonderful program that, through the use of melodramatic and lame sketches, taught the importance of consumerism that I believe should be reinforced in citizens today.

There is no way that one is benefiting if one has to spend money to get Air Mile Rewards, buy estates with a 40-80 year amortization period contract, use a credit card to buy everything that tempts them and buying/selling debt and generally spending money that they don't have/buying [luxurious] material possessions that they do not need.

In my opinion, but then again, I'm a guy who always pays by cash and doesn't have a credit rating because I don't have credit cards.