How long until bankruptcy?

[Scar Face]

It's threads like these that make me really hate the newish acadmey/mudpit split. This isn't so much political theory, I'd think, but speculation on the future. So I don't really know weather this thread fits in here or the pit better. Anyways.

As we all know, America is trillions and trillions of dollars in debt, and this is rising rapidly. America will never pay it back. So how long, do you think, will it be before America declares bankruptcy? Or Britain? Or any other number of countries effected by these times.

[bushbush]

not in a lonnnnnnnnnng time. US is still a very strong country economically and it holds vast amount of investment around the world. Right now its debt is about 70% of its GDP, which isn't exactly a huge figure for a lot of developed countries. As long as its economy can consistently grow in the long run, it should'nt be a problem.

[Scar Face]

not in a lonnnnnnnnnng time. US is still a very strong country economically and it holds vast amount of investment around the world. Right now its debt is about 70% of its GDP, which isn't exactly a huge figure for a lot of developed countries. As long as its economy can consistently grow in the long run, it should'nt be a problem.

And how is the economy suppose to grow? Our growth for the last decade has been non existent. We don't have an actual economy, its based on borrowing money from overseas and using that to fund our consumption of goods. Thats our entire economy, selling goods to ourselves, with cyclical consumer and government debt. You cant truly grow as an economy if you don't produce anything actually useful.

Warrent buffet/Jim rogers/Peter Schiff and Gerald celente [etc] all predict bankruptcy within a few years, if not less.

[bushbush]

And how is the economy suppose to grow? Our growth for the last decade has been non existent. We don't have an actual economy, its based on borrowing money from overseas and using that to fund our consumption of goods. Thats our entire economy, selling goods to ourselves, with cyclical consumer and government debt. You cant truly grow as an economy if you don't produce anything actually useful.

Warrent buffet/Jim rogers/Peter Schiff and Gerald celente [etc] all predict bankruptcy within a few years, if not less.

well there have been substantial growth in overall production, service and capital stock. But you are right about the part that US economy is mortgaging its future for present consumption.

[Boer]

Didn't Obama say he'd cut the debt in half by the end of his first term? Now, I don't actually think he will, but it kind of suggests that it is at least theoretically possible, especially since I heard some conservative economists say he should/could reduce it more/faster.

I don't think any major country will declare bankruptcy because it would destroy their currency and possible lead to revolt. I think telling all the old people no more social security due to government bankruptcy would get all of our politicians run down by Cadillac and beaten with canes and walkers.

[NONOPUST]

I would say next tuesday.

[Ciabhán]

So what happens when the current government declares bankruptcy? They 'make' more money and inflation explodes, they reform themselves declaring a new government that owes nothing, revolts occur and it starts all over again? In this modern age money means nothing, it is the 'promise' to pay of governments that long ago lost the means to do so. Precious metals and gemstones were the promise behind the currency before the merchants got so greedy that they far exceded the means to pay. Economies around the world are based on a huge lie that eventually has to collapse.

With the 'fake' currencies used these days pence could become pounds and a pound could be millions of pounds with nothing but a word.

[Scar Face]

Didn't Obama say he'd cut the debt in half by the end of his first term? Now, I don't actually think he will, but it kind of suggests that it is at least theoretically possible, especially since I heard some conservative economists say he should/could reduce it more/faster.

I don't think any major country will declare bankruptcy because it would destroy their currency and possible lead to revolt. I think telling all the old people no more social security due to government bankruptcy would get all of our politicians run down by Cadillac and beaten with canes and walkers.

America declared bankruptcy under FDR, and Britain did it in the 1970's. If it has to happen it will happen. Obama is a moron, remember that. To pay off our debts we would have to increase our income tax by more than 100%, all our taxes would more than double across the entire board, and that would last years and years and years. No one would go for that. It's inconceivable. Bankruptcy is inevitable, its just a matter of when.

Edit: And Obama didn't promise to lower the debt, he promised to halve the budget. He went back on his word like a day later, this is going to be the most costly administration in history.

[Ciabhán]

America declared bankruptcy under FDR, and Britain did it in the 1970's. If it has to happen it will happen. Obama is a moron, remember that. To pay off our debts we would have to increase our income tax by more than 100%, all our taxes would more than double across the entire board, and that would last years and years and years. No one would go for that. It's inconceivable. Bankruptcy is inevitable, its just a matter of when.

Edit: And Obama didn't promise to lower the debt, he promised to halve the budget. He went back on his word like a day later, this is going to be the most costly administration in history.

All this is still nothing more than a fleeting promise. Value is what the consumer will pay. If payment stops coming then value goes down.

[Boer]

America declared bankruptcy under FDR, .

I certainly hope you have more evidence for this than the whole, fake Congressman Traficant thing. If so, I look forward to reading it, if not you should read this: http://home.hiwaay.net/~becraft/deadissues.htm just search down to " XXI. The 'bankruptcy of the United States" as alleged by "congressman" Traficant " .

[Каие]

Never. None of the big countries will go bankrupt. If Japan hasn;t over all these years of near 200% debt, we won't any time soon.

[Son of Mao]

The United States will fall by 2010.

[Baron Thunder-ten-tronckh]

RE:^ Just as the mayan calendar ends, eh? *rolls eyes*

[Son of Mao]

Seriously US has a debt that is simply nothing that can stop it from disintegration. If someone can show me how this trend of exponentially increasing debt is going to change I will change my opinion.

[Каие]

Japan has ten times more debt than the USA they didn;t die in the last few decades.

[Scar Face]

Japan has ten times more debt than the USA they didn;t die in the last few decades.

Yeah and Japan has been in a severe recession since the 90's. Given further world wide economic trouble, Japans incredibly stagnant economy will take another massive dip, and they will be forced to.

Since the USA debt is denominated in US dollars and the USA can simply print the money -- the question is not one of bankruptcy but of exchange rates. If the end is so clear to all of you, why do you suppose the dollar is still doing OK on the international scene? Jewish bankers? Nazi gold? Rockefeller and trilateral commission intrigue?

The Dollar is doing well because of an artificial rally. When the economy went south people got afraid and pumped wealth into the dollar, trying to have some stable assets. The rally has been tampering off lately and the Dollar has been inflating.

[Axeman]

About the same time that Russia gets back Alaska, New England and the Eastern Seaboard goes to the EU, the Great Plains go to Canada, and the South and Southwest go to Mexico.

I hope you all understood that reference otherwise it makes no since.

[Viking Prince]

Since the USA debt is denominated in US dollars and the USA can simply print the money -- the question is not one of bankruptcy but of exchange rates. If the end is so clear to all of you, why do you suppose the dollar is still doing OK on the international scene? Jewish bankers? Nazi gold? Rockefeller and trilateral commission intrigue?

[Sphere]

Sales of US treasury bonds are still quite strong. As long as investors are willing to buy them the US can finance its debt indefinitely.

[Trey]

Since the USA debt is denominated in US dollars and the USA can simply print the money -- the question is not one of bankruptcy but of exchange rates. If the end is so clear to all of you, why do you suppose the dollar is still doing OK on the international scene? Jewish bankers? Nazi gold? Rockefeller and trilateral commission intrigue?

Most likely a combination of any of those.
Nazi gold is the most exciting though.