ST Alpha - "It's not the same as, say, Argentina under Kirchner - "we're not going to pay". But it's tough negotiating that would make it harder for the US to" (Reading a Post)

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In response to "Yup which is not honoring our debts. That's a huge deal and not something that can be allowed to happen. Even the discussion can't happen. -- nm" by Krusty

It's not the same as, say, Argentina under Kirchner - "we're not going to pay". But it's tough negotiating that would make it harder for the US to

Posted by Roger More (aka rogermore) May 6 '16, 06:53

obtain debt in the future. If creditors see a risk of getting back 80 cents on the dollar from what is supposed to be the safest investment in the world, that's bad for America.

Responses:

That's my point. Countries that don't see a 100% return won't be interested in giving credit in the future and will lower our standing in the world. - Krusty May 6, 06:57 20
- I'm agreeing with you, but to SB's point this is still "honoring the debt" - Roger More May 6, 07:03 19
  - I'd look at the idea of full faith and credit....if I bargain for a deal; that's not full faith/credit imo. - Will Hunting May 6, 07:09 6
    - Circumstances change. If I take out a mortgage to buy a house, and then I lose my job and can't keep up payments, and renegotiate a new deal with the - Roger More May 6, 07:22 4
      - The difference is your example; you can't pay. We can. - Will Hunting May 6, 07:25 2
        
        I get that 100%, as you can read from my other posts - I'm just saying that I understand where SB is coming from. -- nm - Roger More May 6, 07:32 1
        
        They updated the article since I originally posted it, and his other comments are much less benign, imho. -- nm - znufrii May 6, 07:37
      - Illustration #368,743,997 how running country is not like running a household. -- nm - znufrii May 6, 07:24
    - Exactly what I'm trying to get at. -- nm - Krusty May 6, 07:13
  - then the next time you ask to borrow $100 from me my response is fuck that shit. -- nm - Bacon May 6, 07:09 1
    - Which is probably what the bondholders will say too. They're right to expect payment of the full amount - like I said, it's supposed to be the safest - Roger More May 6, 07:10
  - I guess I don't see it that way. We have a contract to pay in full and when we renegotiate we're not honoring that original deal. -- nm - Krusty May 6, 07:07 8
    - It's just how it works in the financial markets -- (edited) - znufrii May 6, 07:10
    - it's like bartering. No one would pay full price for a new car so they haggle it down -- nm - Beaker May 6, 07:08 6
      - We're not a car dealership. We're the richest country on Earth, our money is the world's primary reserve currency. We don't barter our debts. -- nm - Krusty May 6, 07:12 4
        
        technically, isn't Qatar the world's richest country? - Andie May 6, 07:13 3
        
        On a per capita basis probably. But in total, the USA's assets would be hard to beat. -- nm - Roger More May 6, 07:24
        
        pretending to like Trump is hard work -- nm - Beaker May 6, 07:13
        
        You know what I meant. -- nm - Krusty May 6, 07:13
      - you do that in the beginning - before you agree on the deal. once you've signed the deal for the car, you pay that full amount. -- nm* - Andie May 6, 07:11
  - If it's voluntary, yes. - znufrii May 6, 07:05
Not what you want to be doing with the bedrock financial instrument of the global economy, for sure. -- nm - znufrii May 6, 06:56 1
- Exactly. -- nm - Krusty May 6, 06:57

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It's not the same as, say, Argentina under Kirchner - "we're not going to pay". But it's tough negotiating that would make it harder for the US to

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