BOJ sees global damage if U.S. debt ceiling is not raised

Don't worry, BOJ, Abe'll fix it!

Abenomics conquers all!

How very astute of them to notice.

That sound you hear is EVERY country trying to break away from the Bretton-Woods agreement, as well as the Petrodollar. Countries are breaking away faster than the US can invade them, and instead of getting rid of the CRIMINAL Federal Reserve and managing the TRILLIONS of debt, the US just prints more money and taxes the bejesus out of its citizens. Sure, that's going to work.

The fact that America going down the pan can suck the rest of us with it is very disturbing. The world should cut free of the US... at the moment we are like small boats getting too close to a sinking supertanker...

Get that failure of Abenomics excuse ready, people!

The problem is that even if US defaults so what can anyone do about it? They have the biggest and deadliest military! They can turn around and say we're not going to repay and we'll let investors in US treasuries suffer.

"That sound you hear is EVERY country trying to break away from the Bretton-Woods agreement,"

What planet on you on? The BW system ended 40 years ago.

These dick heads in Washington need to pull their heads in and act responsibly, stop the BS and get the issue sorted, the world does not need the silly games and while you play the rest of the world realises how pathetic you really are.

Standing over other countries and telling them what to do and what you want but you cant even get your own house in order.

The US has lost its leadership role in the world and its credibility long ago, now its reinforcing the fact.

You play political games for your own dumb ego's you are pathetic children.

The U.S. doesnt care what BOJ thinks or any other Japanese politician. I kind of like that )

These dick heads in Washington need to pull their heads in and act responsibly, stop the BS and get the issue sorted, the world does not need the silly games and while you play the rest of the world realises how pathetic you really are.

The world's governments have been playing too fast and loose with their taxpayer's money for too long. Perhaps a default might be a wakeup call, and force governments to realize that there are consequences for their actions.

I wish I could borrow billions and set my own interest rate, borrow even more, and then pass on my debts to my grandchildren. If we and the polticians have to feel the pain for our misdeeds right now, perhaps we'll be more careful. The people will stop electing special-interest prostitutes again and again, and those who are in office will have to behave responsibly with our money.

The threat of default is a big gun to the head of the current poor way of doing things. It's too bad it has come to this. But it is better that something happens now, when pur debts are "only" 100% to 250% of our respective GDP's. In a few years the debts will certainly be even larger, and the fall much further, unless you prefer to exchange the well-being of your descendants for your own comfort.

America's banking crisis started the global downturn in the first place, and now that countries are starting to recover this bunch of morons are in danger of sending us all back into the darkness again. Get a grip America... you want to lead the world? Show us you're up to the job!

What planet on you on? The BW system ended 40 years ago.

Sorry, I used "Bretton-Woods" to refer to both the "New Bretton-Woods," "Revived Bretton-Woods" and the general situation of the world economy (especially Asian currencies) being so heavily reliant on the dollar. I apologize for my slightly ambiguous post, and I thank you for your polite and constructive correction...

a question, why have not the american banks put pressure on the government to act ??? how would they gain on a default ??? what 's the scenario if the US is downgraded ?? and finally how badly would China and Japan really suffer if there was a default. I am beginning to wonder if this is not another one of those situations were only the banks tend to gain. Welcome any realistic comments

We have another Ozawa but in the US side. Republican party is responsible for the terrorism, most of the crisis in 2008 and war expenses, people dying in the hospital and poverty. They are now willing another crisis. Be careful with China!

Fantastic post sangetsu

I wish I could borrow billions and set my own interest rate, borrow even more, and then pass on my debts to my grandchildren.

this. couldn't have said it better. We are past the point where these debts can ever be repaid, so better something drastic happens now or the entire system is going to come crashing down. My feeling is though that they can't stop, a junkie needs their fix. If governments stop borrowing they are facing a deep depression and they are trying put it off. The problem is the more we try to put it off the worse it will become.

pochan,

the fact is that government debt is dropping dramatically due to reduced spending and increased tax revenues from the rich. Do not worry about the US debt, historically the percent of debt versus the total GDP is low. In a few years, unless the republican terrorists do succeed in destroying the US and world economies, the USA annual debt could be nearly zero. This happened under Clinton the last time.

The bigger issues is why the tea party terrorists hate Obama so much. And are willing to destroy the US to show him how much they hate him. This goes back to slave ownership days. Slaves were in their proper place the racist whites thought and when told that no, black people have a right to live, the former tea party types said we would rather destroy the USA-hence the civil war-than free the slaves. In 2013 the tea party racists are saying we would rather destroy the country than let a black man give healthcare to millions who do not have it.

Zircronium, what reality do you live in? America's entitlement programs cost more than four times the world economy combined. An American default may not happen today or tomorrow, but it will happen eventually. If I were in charge I would take a chainsaw to the military budget and cancel all foreign aid. I don't know how much time that would buy, but it's better than "staying the course".

America's entitlement programs cost more than four times the world economy combined...

Really. I hope you have a reference for that or I'm calling BS on it.

As far as the state of the US dollar as the currency for international commerce, the US government is setting the world up for a rude jolt and then the US economy for a downward spiral as countries and companies decide to find a "safer" currency to use for trade.

The other problem is that if the US even hints at defaulting on t-bills it could cause the banking system to seize up as t-bills are often used as international collateral for loans.

The Economist has a very good leader titled "No way to run a country." Worth reading.

Well it needs to happen eventually. Debt cannot just expand into the cosmos it has to eventually be based on reality. The powers that be have prevented additional recessions that would have autocorrected a lot of this but by delaying them they have set us up for a mother of a depression. Congrats Boomers

If the US defaults the size of America's military won't matter due to the lack of people being unable to afford fuel, medicine, food, etc.

This is the reason why countries need to rely less on America and more on self sufficiency.

and then pass on my debts to my grandchildren.

There's no evidence that large fiscal debts must lead to higher taxation. Only if dumb politicians decide that it must be so. In Europe, where 80% tax rates on individuals were common in the 1970s, the countries were generally running balanced budgets. Taxes have since come DOWN over the years, as fiscal deficits have increased.

There's no evidence that large fiscal debts must lead to higher taxation.

Of course there isn't, we've never been here before.

"Of course there isn't, we've never been here before."

Yes we have. You're too young to remember postwar USA, and but maybe not Canada in the 1990s. I've heard all this scaremongering before. The idea of a generation to generation burden is pure myth.

I think it will help if it does not set debt ceiling but abolish debt limit until crisis is over/ Just my guess.