will usa default on there loans

Prefontaine said:

you see by definition inflation is when 1 dollar no longer buys 1 dollar worth of stuff, it suddenly only buys .50 cents worth of stuff.

if you look at income and buying power in our history, you will see that yes we make more money then our grandparents did in the fifties, but we cant buy as much stuff,

Click to expand...

what you are describing is a RESULT of inflation. a result of inflation is a steady rise in the price of everything. in an ideal society incomes steadily rise as do prices as the monetary supply grows.

inflation is a tricky term to be throwing around....

To me it looks like near zero inflation or a little deflation. Especially wage deflation and high unemployment. I also see big corporate welfare. Smaller entrepreneurs are the ones really getting screwed, the ones who create many of the new jobs and industries.

The budget crises is a 100% hoax. There is no reason for us to default unless congress decides to default. There is tons of money to pay the coupons but if congress tells the world to go get fucked we are not going to pay, then you have a real crises.

I trade the 30 year T-bills futures and of coarse I watch the implied volatility on options contracts, so far only a small increase and things are in a holding pattern waiting to see what will happen. It looks like the markets think congress is bluffing and it is pure bullshit.

But sometimes people actually start believing there own bullshit and think it is real. They may actually create a problem where there was none.