US Default Inevitable: Fund Manager

From CNBC

A U.S. default isn't a matter of "if" but "when," David Murrin, chief investment officer at Emergent Asset Management, told CNBC.

"It's inevitable that the U.S. will default—it's essentially an empire which is overextended and in decline—and that its financial system will go with it," he said.

The question is: Does the U.S. default when it is forced to by the outside world, probably the Chinese, or does it take the option to default on its own terms in such a way that it may have a strategic advantage, Murrin said.

Marc Faber has a slightly different view:

“I don’t think the US will default in terms of not paying the interest on its debt. They will though default via a falling dollar as Bernanke begins printing more money,” Faber said.

“They will get an agreement or fiddle around with the debt ceiling,” Faber said.
“I disagree with the bond bulls that are basing their case on a deflationary environment. In such an outcome tax revenues would collapse and stocks would fall heavily.”

Faber predicts that 1,370 points was the high for the S&P 500 index in 2011 and told CNBC that if stocks fall another 10 or 20 percent from here, another round of quantitative easing is inevitable.

“The risk is not to hold gold. Whilst there is the potential for 10 percent downside in the short term over the next 5 to 10 years the gains will be big. Or put another way, the purchasing power of paper money will fall," Faber said.

“Cash is very risky asset except in times of major market corrections,” he added.

Will Financial Ruin End Neocon Empire? Chinese Talk of Selling U.S. Bonds

Will an empty pocketbook and a broken economy finally put an end to the wars of aggression, to the new 'World War IV' , to the manipulative media, to the loss of our liberties and threats of terror and the militarization of our society on all levels? If it stopped the mighty U.S.S.R. why can't it also stop our corporate masters and power elite in their tracks? Of course the bankers and special interests might find ways of keeping their armed to the teeth mercenary, the USA, fighting on, but some recent articles point to problems ahead for the war plans of the empire builders.

As Eric Margolis points out in an article in the Toronto Sun, "More empires have fallen because of reckless finances than invasion. The latest example was the Soviet Union, which spent itself into ruin by buying tanks."

He goes on to make comparisons to the dying British Empire: "Besides the late U.S.S.R., the U.S. also increasingly resembles the dying British Empire in 1945, crushed by immense debts incurred to wage the Second World War, unable to continue financing or defending the imperium, yet still imbued with imperial pretensions."

Did you know that China spends only 10% of what we do on defence? Will someone invade China tomorrow? Doubt it. And imagine how much money we would have for the betterment of our society if we slashed our defence spending only in half or even just by a quarter or a third? We would still be spending more then three times what anyone spends on defence. What would end is the murder of countless civilians and soldiers off in the deserts of central asia somewhere for the sake of big money interests and greedy imperial minds like those of Kristol, Cheney, Lieberman, Pearl, Podhoretz, Pipes etc...Anyone who supports an American empire, not for the benefit of ordinary Americans but for the benefit of international bankers, the military-industrial complex, the 'robber class' and the power elite, will obviously need to control our media and our society to keep control of THEIR imperial army, namely the U.S. military.

Though we might not have control of our government, our media, or our military, if our finances collapse, then THEIR empire collapses with it.

A recent article on how Chinese military officers spoke openly about the possibility of retaliation against the U.S. for its recent arms sales to Taiwan through the selling of U.S. Bonds underscores how the greedy empire of the neocons might fall like a house of cards should the Chinese ever not wish to cooperate.

These ideas have been around as this 2008 video of Ron Paul illustrates, who thought then "it's time to end the empire" since "the system here is going to collapse because we can't be maintaining this with our ability to pay for it."

As William Kristol described "All good things must come to an end." Though he was speaking from his warped right/left perspective on the 'conservative' era, his statement equally applies to more then a decade of open lies to the public, invading of foreign countries, undermining of our civil liberties, and creation of massive debt, even as he and his ilk go on to talk of modern conservatism as 'defending liberty with strength and confidence.'