[lbo-talk] Capitalist collapse in its own contradictions; General crisis.

[c b]

from Nicholas J. Evancik : "What is about to happen if the Republicans
refuse to raise the debt ceiling is called "Sovereign Default".
Basically the country will not be able to pay interest payments to
bondholder.
"If the debt ceiling isn't lifted again this fall, some serious
financial decisions will have to be made...At some point, the
government won't be able to pay interest on its bonds and will enter
what's known as sovereign default, the ultimate financial disaster
achieved by countries like Zimbabwe, Ecuador, and Argentina (and now
Greece)...If the American government can't stand behind the dollar,
the world's benchmark currency, then the global financial system will
very likely enter a new era in which there is much less trade and much
less economic growth. It would be, by most accounts, the largest
self-imposed financial disaster in history."