Could the United States Go Bankrupt

I’m sorta on a gloom and doom kick tonight. I had a massage so I’m all relaxed and then had a 3 1/2 hour nap so I’m really flowin’.

Summaries and snippets from ‘Oh yes, it can happen here.’

The optimistic view:

1) The US can always print more money.
2) The US needs China and China needs the US.
3) The US anchors the world economy.

[I]f the Bush administration succeeds either in making permanent his major tax reductions (most of which sunset after 10 years), or in adding $2 trillion of borrowing to privatize Social Security, the fiscal situation would go from merely disastrous to catastrophic.

As the US trade deficit approaches a staggering 7 percent, it’s not clear how much longer foreign investors will keep investing in dollars and dollar-securities, such as corporate stocks and government bonds.

Scenario:

In a future crisis involving the tense China-Taiwan relationship, the Chinese ambassador suggests to Secretary of State Condoleezza Rice that maybe the United States would like to move its warships 500 miles away from Taiwan. Rice demurs. The next day, the Bank of China sells a few –just a very few to get our attention — US Treasury securities. Money markets reel.

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About Andy

Gay Hoosier Taurus INFJ ex-playwright pianist gymbunny published author in San Francisco. Tw · Fb

3 thoughts on “Could the United States Go Bankrupt

  1. JB

    If you just print more and more money, doesn’t it get devalued further and further, at which point it’s less and less popular with the rest of the world? Or am I just repeating what the article’s already said?

  2. Michael Cooke

    The American people,

    The socio-political status quo will bring economic suffering as early as 2010…even if the United States avoids official receivership itself.

    The international bankers already have a plan to reform the global economy. However, the plan of the international bankers is not in the best interest of the global masses.

    Retire your personal debts while there still time.

    Sincerely, Michael Cooke California

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