Mayor Bloomberg Speaks

As of Sunday night the nation still doesn't have an agreement on the table to avert a potential default of the USA.  If nothing passes then in the next few weeks there simply won't be enough in their checkbook to make the payments that are due that day.

We have written much about how our entire financial system is based solely on "faith and confidence" so I will give you some quotes from Mayor Bloomberg that also recognize the fragility of our current system as we stand at the edge of the abyss.

New York City Mayor Michael Bloomberg believes a U.S. default on its debt obligations would be a "seismic event" that would damage "America's word" and its status as a dependable financial standard.


"I don't think anybody will look ever again at America and the dollar as the reserve currency, where this is the standard by which all other risks are measured," if the U.S. defaults on its debt obligations, Bloomberg told "This Week" anchor Christiane Amanpour. "It's one seismic event that says you can never depend 100 percent on America's word anymore."


"The world won't come to an end," Bloomberg added. "We will find a way to pay people afterwards and get government going again, but it puts a doubt in the back of people's minds that you would find it very difficult to erase."


"At some point, the public's got to say, 'look, I'm tired of these shenanigans,' whether it's in Washington or state capitals or cities," Bloomberg said. "We're just not acting responsibly, we're not acting as adults, we're not making the long term investments… We're mortgaging our kids' future. We're destroying this country."


See it here;  http://abcnews.go.com/Politics/michael-bloomberg-impossible-reduce-long-term-deficits-spending/story?id=14146540

It's comforting (insert sarcasm) that the New York's billionaire mayor seems to know that "the world won't come to an end" if America begins defaulting.

Also let's remember that New York just legalized gay marriage and is going to have over 800 gay couples get married this week.  They are one of the worst states as far as balance sheets are concerned and will probably be one of the first to start defaulting on their obligations.  Don't be surprised if something shakes in New York in the not distant future.