Bitcoin and the US debt limit battle

[Barnacle_Ed]

I'm all too aware that the looming threat of the United States government defaulting on its loans is a subject that's been flogged to death by all major news outlets. Especially here in America. However, what I'm interested to hear is what everyone on here thinks will happen this upcoming Thursday. And - more importantly - how it will affect Bitcoin prices...if at all.


Personally I think that despite international pressure to reach a solution, this will be another down-to-the-wire decision with a lot of posturing from both of the major parties (just like last time). We'll see the US credit rating get marked down another point, largely because of the current administration's dysfunctionality. Finally, we'll see a moderate rise in BTC prices over the week (maybe 30%) as smart US traders look to new sources to hedge their assets.



Anyone else have an opinion or any thoughts?

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[Lethn]

They will most likely get the debt ceiling raised again and find another way to stall the whole process, I doubt they'll do anything about the real problems the American economy faces ( The healthcare system is nothing really if you know anything about economics ) until it collapses entirely, I think part of what they do is put this on as a drama thing to make it seem like they can come together in a crisis since they've fucked everything else up.

In short, Rome will fall and those enslaved to debt will be free.

[Habeler876]

They will most likely get the debt ceiling raised again and find another way to stall the whole process, I doubt they'll do anything about the real problems the American economy faces

no doubt -- this is what happened last time and will continue to happen. i don't understand why people get so worked up when this happens -- it always gets pushed back and we keep on saddling more debt. 

[Barnacle_Ed]

no doubt -- this is what happened last time and will continue to happen. i don't understand why people get so worked up when this happens -- it always gets pushed back and we keep on saddling more debt. 

Mr. CGP Grey explains it far more eloquently than I could. It's a bloody stupid system in my highly biased Canadian opinion, but I suppose an alarming number of political structures are.

Basically, FUD + politics. That's a mess and a half of itself, doubly so when Congress couldn't even agree to keep the government funded...so the fear of this newest struggle turning into a prolonged affair seems justified in my book.

[erikspoon]

the gov is not funded for quite some time
it just invents money any time its missing a bit
but don't worry the grandchildren of today's citizen would still pay those debts

[hulk]

They will most likely get the debt ceiling raised again and find another way to stall the whole process

This....

[Rassah]

Just sit back and enjoy watching the entertaining drama.

[AU]

They will pass some bullshit minutes before the deadline.. US might downgrade regardless

[clock27]

They'll impeach obama before any real solution happens and that'll be impossible with all the democrats in office atm

[Rassah]

They'll impeach obama before any real solution happens and that'll be impossible with all the democrats in office atm

That would require Obama to actually do something illegal. And Bush Jr. has set such a high bar with that, that I doubt any president will ever be successfully impeached.

[AU]

They'll impeach obama before any real solution happens and that'll be impossible with all the democrats in office atm

That would require Obama to actually do something illegal. And Bush Jr. has set such a high bar with that, that I doubt any president will ever be successfully impeached.

Agreed.. Not liking his policies does not qualify for impeachment

[Barnacle_Ed]

Agreed.. Not liking his policies does not qualify for impeachment

Just don't tell that to Michelle Bachmann; her "impeach Obama" rhetoric is hilarious.

[Ekaros]

the gov is not funded for quite some time
it just invents money any time its missing a bit
but don't worry the grandchildren of today's citizen would still pay those debts

I wonder how long it would take to gain same status if some time people went just: "Nope, we won't pay these debts!"

Short term pain, over the long term one...

Too bad people can't handle that.

[Rassah]

the gov is not funded for quite some time
it just invents money any time its missing a bit
but don't worry the grandchildren of today's citizen would still pay those debts

I wonder how long it would take to gain same status if some time people went just: "Nope, we won't pay these debts!"

Short term pain, over the long term one...

Too bad people can't handle that.

Problem is, a lot of the debt is right back to the people. Much of US debt is held by US citizens, and specifically retirees, as "safe" retirement investments.

[Spendulus]

the gov is not funded for quite some time
it just invents money any time its missing a bit
but don't worry the grandchildren of today's citizen would still pay those debts

I wonder how long it would take to gain same status if some time people went just: "Nope, we won't pay these debts!"

Short term pain, over the long term one...

Too bad people can't handle that.

Problem is, a lot of the debt is right back to the people. Much of US debt is held by US citizens, and specifically retirees, as "safe" retirement investments.

Actually that's not a problem.  The fact they were lied to and basically forced to hold those "safe" investments is not relevant.  They bought them, and they own them, and they can lose on those investments.

And they are losing money on them right now, they have in the past, and they will in the future.  It is not possible to "make a profit" on holding a fiat currency, for which the currency is being ad hoc printed, by holding said currency to receive an income stream from the printed money.

 

[TheButterZone]

They'll impeach obama before any real solution happens and that'll be impossible with all the democrats in office atm

That would require Obama to actually do something illegal. And Bush Jr. has set such a high bar with that, that I doubt any president will ever be successfully impeached.

Agreed.. Not liking his policies does not qualify for impeachment

A government's refusal to prosecute itself for its own crimes does not mean what it's doing is not illegal. It just means the wolves are laughing at the sheep begging them to eat their fellow wolves.

The "above the law" status quo of government means that there's absolutely nothing evil its officials can't get away with, including murdering babies in the Rose Garden in front of the entire worlds' press corps.