Effect of US sequestration on bitcoin?

[chriswilmer]

Apparently it's actually happening: http://www.nytimes.com/2013/03/03/us/politics/Spending-Cuts-Imposed-US-Starts-to-Trim-Its-Budget.html?pagewanted=1&ref=us

[1715306347]

1715306347

[1715306347]

1715306347

[MonadTran]

None?
They have gone too far. Nothing can stop the collapse. Nobody is interested in stopping the collapse. Of course, they are going to talk about stopping it. That's politics.

[Rothgar]

It's only $85 billion over a year.  The fed prints that in only one month.  

[Littleshop]

It's only $85 billion over a year.  The fed prints that in only one month.  

Printing de-values the currency of course and even de-values the debt hurting dept holders and savers alike.  So printing does not send the US closer to collapse and neither does the sequestration.  What does hurt the US is more debt. 

[sublime5447]

It's only $85 billion over a year.  The fed prints that in only one month.  

Printing de-values the currency of course and even de-values the debt hurting dept holders and savers alike.  So printing does not send the US closer to collapse and neither does the sequestration.  What does hurt the US is more debt. 

I wish that were true unfortunately it is not. First, printing is expanding the debt. It is one in the same. All dollars are created with debt.
Second the system requires ever growing debt, If total debt (public and private debt) doesn't continue to rise then the economy will go into recession.

 

[Rothgar]

I said nothing about collapse.  I was just trying to put this in perspective. 

It's only $85 billion over a year.  The fed prints that in only one month.  

Printing de-values the currency of course and even de-values the debt hurting dept holders and savers alike.  So printing does not send the US closer to collapse and neither does the sequestration.  What does hurt the US is more debt. 

[sublime5447]

Sorry I only wanted to quote littleshop. 

[ElectricMucus]

It's a deflationary impact on the US. This probably could mean the price increase of the Yuan slows down.

Bitcoin is too small to be affected.

[Littleshop]

The sequestration will slow the rise of the debt so it will slow inflation but probably not enough to be seen.  If it could be seen, it would decrease the speed at which bitcoin increased in value.  Unless sequestration really screws the economy little difference will be seen. 

In Europe recently and in Great Britain in the past, things like sequestration during bad economic times have NOT helped the economy. 

[DeathAndTaxes]

Please don't buy into the media hype that the sequester is any Massive change.

1) The sequester affects the 2013 "budget"  (well continuing resolution) which is ~5% over 2012 levels.  So it is a "cut" in the amount spending will increase.
2) The $85B number represents roughly 2.24% of the $3803B budgeted for this year.  Historically Congress has always overpsent the budget as throughout the year supplemental "one time" spending bills are passed.  Usually to the tune of 5% to 10% total outlays.
3) The $85B number doesn't all take effect in 2013.  Only roughly half of it does.  The rest includes cutting some long term spending plans over the course of .... wait for it .... 10 years.
4) Nothing prevents Congress from passing a spending bill to spend $85B, $850B, or $8T more if necessary.

[sublime5447]

excellent review of the effects of sequester https://www.youtube.com/watch?feature=player_embedded&v=JOjK94kwn0U#at=258

[poly]

The US cannot dramatically reduce their debt because the economy would collapse. I really don't want to type up a long response on this, so I suggest you seriously research the subject yourself.

[odolvlobo]

The US cannot continue to dramatically reduce increase their debt because the economy would collapse. I really don't want to type up a long response on this, so I suggest you seriously research the subject yourself.

FTFY

[sublime5447]

The US cannot continue to dramatically reduce increase their debt because the economy would collapse. I really don't want to type up a long response on this, so I suggest you seriously research the subject yourself.

FTFY

FTFY   You are both right. This system is not sustainable it requires exponential growth of debt which isn't possible, so if we stop deficit spending the economy will fall into depression and if we keep spending we will eventually do bankrupt and default. Watch this video you wont regret it.

http://www.youtube.com/watch?v=iquemUNNYY8 

[BitCoinsLOL]

BitCoins the real Bank of America