We've been there before.  The last time, if I recall correctly, was WWII.  Now there is one major difference between then and now.  In WWII just about all of that debt was owed to Americans via war bonds.  As we all know, countries like China and Japan own about half of our debt today. 

Debt/GDP of 150% is really the end game.  No country in history (except Britain a long time ago I THINK) has ever recovered from that much debt.

There's no doubt in my mind that quantitative easing resulted in nothing more than an increase in speculation (equities up) and also fueled a rise in commodities.  For the average Joe, this equated to very little benefit and more likely increased impoverishment via higher gas prices, heating, etc.

We could easily fall back into a recession (as it is defined in economics we are not in a recession or depression right now).  Unemployment is 9%+ not counting underemployment and those who have just given up on seeking work.  The debt crisis, which has been discussed ad nauseum here.  The economy is very fragile.

As we saw in 2008, the financial markets can most definitely bully Congress into action.  I'm of the opinion that we take our medicine now before we have to pay the piper even more down the road.  The US is NOT insolvent.  All this debt talk is political posturing.  A debt default would be a self-inflicted wound unlike several European countries, which are truly insolvent and in crisis mode.

Tl;dr - America is in a bad state but it's not time to store up on food and guns just yet.  The dummies in power just need to start owning up to their responsibilities rather than pointing fingers.  

I think your heart was in the right place but you need to understand how markets work.  You can't inflate the price by putting in a high bid, it's just going to fill all the lower asks until your order is completed.  No one will see your high bid price.

$20+ for a one-month membership is a pretty steep premium.  That being said, if you have any private pics or videos of Havoc, I may be interested. 

That's because your order is filled at the best available price.  Filling it at $16 when there are lower asks available would be plain stupid.  Almost as stupid as assuming a 3BTC purchase would raise the price or start a rally.  That's like throwing a pebble in the ocean and expecting to cause a tsunami.

No call so far.  Be careful for phishers.

The US dollar will not cause a market crash.  A default on or a downgrade to US debt is what may cause a collapse.  Absolute worse case scenario is a default situation where interest is not paid on Treasuries.  Odds of this happening are very VERY small.  Even without an increase in the debt ceiling.  A downgrade is much more plausible.  A raise in the debt ceiling has a fairly good chance of happening.  It would be a self-inflicted wound to do otherwise.  However, S&P says they need to see cuts of $4 trillion over the next 10 years in addition to the debt ceiling being raised in order to prevent a downgrade.  This may be harder to achieve as both plans in debate do not cut to this magnitude.

How do you protect yourself in a market crash?  Keep your money out of the market.  How do you make money in a market crash?  Short the market, buy gold, buy treasuries, maybe even play the VIX.

As for inflation, I see no signs of "runaway" inflation at this time.  In the end, I think Congress and Obama will just kick the can down the road. 

There's an 11.5k ask wall @ $14.25 right now. 

As counterintuitive as it may initially seem, Treasuries are most likely the safe haven.  The US will pay P&I on their debt and furlough discretionary spending.  Gold will rise but more likely due to devaluation of the dollar.  A downgrade will most likely hit equities the hardest, thus causing a run to Treasuries. 

Could there be a run to Bitcoin?  Sure.  We're in some unprecedent water, no one really knows what will happen.  But if I was putting down a wager, it'd be on Treasuries.   

Men trying to figure out what women want.  This is going to end well.

As I write this, there are currently more "other" than female in the poll.

To give it a little perspective:  http://www.wtfnoway.com/

First thing I noticed too.  Didn't even bother clicking the link.

The odds of default are miniscule.  Geithner, Bernanke, and even the Whitehouse have said they'll pay on bonds even if the debt ceiling isn't raised.  A more likely scenario is a downgrade.  Even if the ceiling is raised, if it's done at the last hour and with no comprehensive budget plan, S&P has already stated they will downgrade.

Even in the case of a downgrade, it's entirely plausible that Treasuries still rally because in a flight to safety, really where else are you gonna go?  Equities on the other hand may get slammed hard.

 

I have a 100 Trillion dollar Zimbabwe note.  PM me an offer if you're interested.

I'm having difficulty following your logic.  In your example, you hold all $21MM Bitcoins.  There are no other holders of Bitcoin.  You're it.

How do you "present goods and services to holder(s) of Bitcoins" when none of them exist?  Further why would anyone agree to pay something knowing that they can never collect on those 1,050,000BTC's that exceed the limit?   

Nice post OP.  As I stated in another thread, by design, Bitcoin puts the onus on the user to shape its future.  Having a revolutionary piece of technology is not enough, Bitcoin will succeed or fail based on the amount of effort put forth by its users. 

Reminds me of the quote: "Two hands at work will accomplish more than a thousand clasped in prayer."

If anyone is currently working on projects to improve Bitcoin's infrastructure and is in need of assistance, feel free to PM me or post to the forums. 

A.  1790 and 1933.  There were also several state-level defaults.

B.  I agree.

I agree.  If they pull out of Treasuries the money needs to go somewhere.  Also China is tethered to the US as they are dependent upon us to buy their exports.  A strong dollar is not in their best interest.