Dear Poirot,

<<an economic calamity like none the world has ever seen.>>

The USA will collapse, becoming insolvent. It's just a question of when.

If it doesn't, then Americans will continue to be eating and drinking at the expense of the rest of the world forever, never paying their bill. There is no chance they could ever repay their astronomical debts in real commodities or services. Your grand-grand-grand-children would then still be feeding them for no return other than green notes which could not even be used as toilet-paper (because they are at best made of plastic, otherwise of electronic bits).

The wise thing to do, is to disengage from the American economy now, rather than wait for the inevitable shock-wave once the USA becomes a 3rd-world country, where it deserves to be.

Obama like Greece and the rest of Europe believe that you can keep borrowing endlessly. He might be popular now as he hands out candy but no doubt future generations will curse him.

As Belly says, "And even more important ignoring the attempt to destroy Obarma care when and how will America begin to bring its deficit down.
I think no easy way, maybe no way exists".

This is exactly why clearer minds are resisting the crazy unaffordable Obama care stupidity. Much more restraint is necessary however if the US is to even get it's head above water. Obama care, bad as it is, its just another straw on the load the US is carrying. The camels back is about to go.

I see them having to cut back their military spending quite soon. We would have to at least triple our defense spending, should this happen. Bludging on the US would no longer be an option, & without big brother we become extremely vulnerable.

In exactly the same way as in the US, the NBN as it stands the National disability insurance scheme, & the Gonski schools spending just can't be afforded here. Neither of course can the parental leave scheme, & a lot of welfare we now take for granted.

We can continue to waffle along, the pollies buying enough votes to get elected, & running up the credit card bill for a little longer, but ultimately the poor will be the ones to suffer most when we collapse.

The US & EU are likely to be dragging us down quite soon. The weaker we have become with crazy spending, the worse we will suffer. It is time to sell the supercars we can't afford, & go back to granny's Morris Minor, while we still have at least that option.

Yes, Hasbeen,

Tell us how many trillions the Republican initiated wars in the middle-east have cost their economy?

All for nothing, except death and destruction.

Y much of what you say is true.
Runner however as is his habit looks only at the surface.
So bad is Americas position borrowing more is the only answer.
A question can the worlds economy survive an American default?
I very much doubt it can.
While this thread is about the current crisis, and the reason it is taking place, Republicans are not offering answers to how America can begin to re pay their debts.
I hold the view and American default, or for that matter many in the same danger in Europe, may bring a reform to world finances we never thought would take place.
I recommend we all give some thought to what the world may look like if that different system is forced on us.

I'm afraid you may be right Belly, if only about the western world & our fellow travelers. Sure something will survive, but perhaps nothing that we will find very palatable.

Who was it that said that democracy carries the seeds of it's own destruction? As more people realise they can vote, rather than work for a living, the load becomes too heavy. Most of the west is there right now, & we keep loading on more "rights" daily, while reducing responsibilities.

It would be nice to believe we could back away from the cliff, but the crush of those behind, with their hand out will take some breaking.

It is nice to be able to agree with you about something Poirot, but you can't blame only one side of politics, it was Labor that took us & the Poms into some of those stupid unwinnable wars.

Wars are only worth fighting, if you are prepared to annihilate the other side. Killing a few of their defense force then stopping is a bad joke for everyone. Thank god Obama got his tail spanked over Syria, or we'd be another one.

People do need to understand the US defense force is to a large extent an unemployment buffer. They employ & train hundreds of thousands of people, who have no chance any other way. Perhaps having that huge force does make using it irresistible.

It would be nice if it's use could be more productive, but don't kid yourself, with out that force in existence, we become very isolated, & extremely vulnerable.