© 2017 Mikael Carlson

U.S. DEFAULTS ON DEBT (MARCH 14, 2029)

AMERICA, INC.

CORPORATE PROPAGANDA OFFICIAL TEASER

America, Inc  -  Corporate Propaganda Book Teaser

WITH THE WORLD ABANDONING THE UNITED STATES, AND NO CLEAR POLITICAL LEADER EMERGING AS FDR DID TO HELP LEAD THE UNITED STATES OUT OF THE GREAT DEPRESSION, THE AMERICAN PEOPLE GO TO THE POLLS. THE ELECTION OF THE NEXT AMERICAN PRESIDENT TEMPORARILY BRINGS HOPE, BUT WHEN THE ECONOMIC REPORTS AFTER THE ELECTION SHOWS REAL UNEMPLOYMENT HITTING 25%, THE HOPE QUICKLY DEVOLVED INTO DESPAIR AND DESPERATION. CRIME RATES SOAR NATIONALLY AS MILLIONS OF CITIZENS ARE UNABLE TO MAKE ENDS MEET AND UNEMPLOYMENT BENEFITS RUN OUT. WITH MUNICIPAL AND STATE GOVERNMENTS STRUGGLING TO COLLECT TAX REVENUE, CIVIL SERVICE JOBS ARE SLASHED. TEACHERS AND FIREFIGHTERS ARE LAID OFF, AND POLICE FORCES ARE SLASHED IN MANPOWER, TRAINING, AND SALARY. BY DECEMBER, LAW ENFORCEMENT IN HUNDREDS OF AMERICAN COMMUNITIES WALK OFF THEIR JOBS DUE TO SAFETY CONCERNS WHILE TRYING TO PERFORM THEIR DUTIES.  

HELPLESSNESS AND PANIC

POLITICIANS IN CONGRESS, MANY OF WHOM FROM BOTH PARTIES WERE OUSTED IN THE MIDST OF THE CRISIS, PASS A SOCIAL SERVICES SPENDING BILL IN A LAME DUCK SESSION TO TRY TO STABILIZE THE SITUATION OVER THE CHRISTMAS HOLIDAY. IT FAILS TO RALLY CONSUMERS WHOSE FEARS OVER THE IMPENDING CRISIS MEANS THE USUAL BOOM FOR RETAILERS OVER THE HOLIDAYS DOESN’T MATERIALIZE. AS 2029 APPROACHES, THE FINANCIAL OUTLOOK IS AS GLOOMY AS IT WAS A HUNDRED YEARS PRIOR.

WITH THE DIVIDE BETWEEN THE WEALTHY AND POOR GROWING EVER LARGER, SOCIETY REACHES A TIPPING POINT. ANGER AND FRUSTRATION BOIL OVER AS RIOTING ERUPTS IN SEVERAL CITIES WHEN THE NEW CONGRESS IS GAVELED INTO SESSION. DESPITE CAMPAIGN PROMISES MADE BY NEWLY MINTED REPRESENTATIVES, CONGRESS CONTINUES ITS LETHARGY IN ACTING ON GROWING FINANCIAL CRISIS. REPUBLICANS AND DEMOCRATS, LONG AT ODDS OVER THE DIRECTION OF THE COUNTRY, ARE CONTENT TO USE THE SUFFERING OF THE PEOPLE AS A WEDGE ISSUE TO ENHANCE THEIR POWER. WHILE CRIME EXPLODES AND THE ECONOMY CRUMBLES, THE ONLY THING THEY AGREE ON IS BLAMING EACH OTHER FOR THE CURRENT PREDICAMENT.

 

NO LONGER WITH THE DOLLAR AS THE RESERVE CURRENCY TO STOKE ECONOMIC GROWTH, AND THE COUNTRY MIRED IN A DEEP RECESSION, INFLATION RUNS RAMPANT. WITH INTEREST RATES ON NEW TREASURY INSTRUMENTS NOW CLIMBING EXPONENTIALLY, BUYERS BEGIN TO BALK OVER FEARS THE COUNTRY WILL NOT BE ABLE TO MEET ITS OBLIGATIONS. WHEN CONGRESS FAILS TO ACT ON EMERGENCY LEGISLATION FOR AUSTERITY MEASURES TO PUT THE COUNTRY BACK ON THE ROAD TO SOLVENCY, THE REMAINING PURCHASERS OF U.S. DEBT CEASE THEIR PURCHASES. ON MARCH 14, 2029, THE UNITED STATES OF AMERICA, ONCE AN ECONOMIC JUGGERNAUT THAT LED THE WORLD, RUNS OUT OF MONEY TO COVER ITS OBLIGATIONS AND DEFAULTS ON OVER A HUNDRED TRILLION DOLLARS OF DEBT. 

 

CONGRESSIONAL INACTION

WITH THE DIVIDE BETWEEN THE WEALTHY AND POOR GROWING EVER LARGER, SOCIETY REACHES A TIPPING POINT. ANGER AND FRUSTRATION BOIL OVER AS RIOTING ERUPTS IN NOT REALLY. THERE ARE THREE EXAMPLES IN US HISTORY THAT COME CLOSE TO DEFAULT, WITH THE MOST RECENT OCCURRING IN 1979. THEN, THE US TREASURY INADVERTENTLY DEFAULTED ON $122M, BECAUSE OF WHAT IT SAID WAS A WORD PROCESSING ERROR.

 

ALTHOUGH THE ERROR WAS QUICKLY FIXED, AND EVEN THOUGH $122M WAS A TINY FRACTION OF THE $800BN IN DEBT THAT THE TREASURY HAD AT THE TIME, A STUDY FOUND THAT THE MINI-DEFAULT RAISED THE COST OF BORROWING BY 0.6%, OR $6BN A YEAR.

 

THE OTHER TWO INSTANCES, IN 1933 AND IN 1790, BOTH INVOLVE DEFAULTS AKIN TO THE CURRENT SITUATION IN GREECE, WHEN CREDITORS WERE FORCED TO TAKE LESS MONEY THAN WHAT THEY WERE OWED. SOME ECONOMISTS HAVE DEFINED THIS AS A DEFAULT, BUT IT'S MURKY TERRITORY.

 

--SOURCE: KIM GITTLESON BBC BUSINESS REPORTER, NEW YORK “WHAT HAPPENS IN A US DEBT DEFAULT?

 

AMERICA'S ULTIMATE ECONOMIC NIGHTMARE: DEFAULT ON THE DEBT

WHAT HAPPENS IN A US DEBT DEFAULT?

U.S. DEBT DEFAULT-THE CAUSES AND CONSEQUENCES

WHAT COULD HAPPEN IF THE U.S. DEFAULTS?

 

 

THE REAL WORLD - HAS THE UNITED STATES EVER DEFAULTED BEFORE?