- Joined
- Jun 17, 2010
- Messages
- 9,800
- Reaction score
- 2,719
- Gender
- Undisclosed
- Political Leaning
- Other
61 trillion in unfunded liabilities
50 trillion in the entire world
Any solutions?
America can print all the money she needs, so why worry?
Yes, it can lead to hyperinflation but not bankruptcy.
LOL
Why? The result would be the same (a worthless dollar) and we would have to expend more effort. Much simpler to just declare bankruptcy than it is to kill trees for the same result.
It has been some time since I read it but I read a comprehensive article about the benefits of the US filing bankruptcy. While it has it negative the article made it not sound as crazy as it may seem.
In short,
if we filed we could eliminate all debt ( or simply refuse to make payment ). This is debt that we will never pay off anyway so its not like they are losing as much as we owe due to the bankruptcy, there never gonna get it all not matter what. In turn we go back to a gold backed standard and reissue new currency. This would help ensure the value of our dollar in potential future trade agreements.
We would also lose much of our imports do to the bankruptcy. This while bad short term could actually have a very positive outcome. We would once again manufacture most of our goods and not be losing hundreds of billions a year in trade deficits.
It would also help to insure that countries would be hesitant to loan us money. This would help keep the government spending in check. No more blank check for government spending.
While Im sure it would be bad short term I could see it having the potential to benefit us in the long run. We have been living beyond our means for decades. Its about time we correct this.
It has been some time since I read it but I read a comprehensive article about the benefits of the US filing bankruptcy. While it has it negative the article made it not sound as crazy as it may seem.
In short,
if we filed we could eliminate all debt ( or simply refuse to make payment ). This is debt that we will never pay off anyway so its not like they are losing as much as we owe due to the bankruptcy, there never gonna get it all not matter what. In turn we go back to a gold backed standard and reissue new currency. This would help ensure the value of our dollar in potential future trade agreements.
We would also lose much of our imports do to the bankruptcy. This while bad short term could actually have a very positive outcome. We would once again manufacture most of our goods and not be losing hundreds of billions a year in trade deficits.
It would also help to insure that countries would be hesitant to loan us money. This would help keep the government spending in check. No more blank check for government spending.
While Im sure it would be bad short term I could see it having the potential to benefit us in the long run. We have been living beyond our means for decades. Its about time we correct this.
And everyone would lose their retirement funds when the markets collapse and the Great Depression would look like a Golden Age in comparison when a gallon of milk would cost upwards of $10,000 due to massive inflation.
You are aware of how negatively the world markets responded to the suggestion that a tiny nation like Greece may default. Imagine if the richest country in the world did that. It would be ruinous - not just here, but worldwide.
May be but the that way the Chinese won't take California for pennies on the dollar (you know what happens in the case of bankruptcy, right? ). If a gallon of gas costs $1000, the US debt will vanish. Well, it will wipe out all savings but most Americans don't have much savings anyway and live on credit. So I've herd.
Remember the Wiemar republic?
I don't think you know what happens in case of bankruptcy.
Usually the creditors take some of the debtor's assets. But politics is tricky, I don't know how that would turn out to be.
The courts force us to give up some of our assets and in return our creditors promise not to shoot us. No such framework exists for nations. If the US declares bankruptcy, we are bascially telling our creditors to go to hell. They can try to get it back and the likely reaction would be to send them some of the missiles we bought with their money.