NYC Mayor Bloomberg: U.S. Default Would Slam Financial System!

• The world financial system is heading for collapse! The US will default on its debts. The question is by which method: an outright declaration of refusal to pay or a stealth default via money printing (QE)? If the politician snakes choose the first method, the banking system (banksters) will collapse. The US economy will go into a deflationary collapse. Something banksters fear. Witness what is happening to the Eurozone now. Gold is hitting record highs because of the fear of sovereign debt defaults. The banking system is quaking. With default, the Euro is toast. Similarly, with an outright default the USD is toast.
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• By defaulting using QE to infinity, it buys the banksters time. They can accumulate hard assets using the gobs of money given to them by the central banking cartel. However, inflation will kick in and the USD will depreciate and eventually become toilet paper. My belief is that the Illuminist banksters will opt for QE to infinity. QE3 is a foregone conclusion, don’t let the MSM sucker you into the end of QE meme. All the ‘news’ about raising the debt ceiling are just political theatre for the sheeple.
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  U.S. default would slam financial system: NYC mayor Bloomberg
  NEW YORK (Reuters) – A U.S. debt default would have a catastrophic effect on the U.S. financial system and deal a huge setback to New York City’s recovering economy, New York Mayor Michael Bloomberg said on Tuesday.
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  Bloomberg, mentioned among possible successors to Treasury Secretary Timothy Geithner, said the federal government must avoid damaging the nation’s economy and its credibility around the world with a first-ever U.S. default.
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  “America’s good name and credit are just too important to be held hostage to Washington gridlock, and I hope that in the end cooler heads will prevail and an agreement will be reached quickly,” Bloomberg, a political independent, said in a statement.
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  Congress and the President Barack Obama are squabbling over a compromise that would raise the country’s $14.3 trillion debt ceiling. Republican House leaders oppose tax increases; Democratic Senate leaders are fending off cuts to Social Security and Medicare. The battle must be resolved by August 2 or the country will run out of money.
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  Geithner will not make a decision on his future at the Treasury until after debt limit negotiations conclude, according to people familiar with his thinking. New York City mayors have a history of commenting on subjects of national and international significance, due to the city’s prominence around the world and its role as a magnet for immigrants.
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  Bloomberg is considered a financial expert because he made his fortune on Wall Street as a bond trader and then became a billionaire by founding an eponymous news and data company. He said a default “would also take a serious toll on our economy, and that at a time when the nation is still trying to recover from the deep recession.”

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