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Ron Paul: We Should File Bankruptcy

Should the USA File Bankruptcy?


  • Total voters
    24
Anyone who listens to Ron Paul is simply a fool.. It is sad the news even covers him.. I have yet to hear him actually say something useful and informed..
 
Ron Paul should be declared a loon in need of a straightjacket and a muzzle....hes cracked
 
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.
 
The headline is a fine example of taking someone out of context. Read the whole article and Paul said we should write off the debt owned by the Federal Reserve.
 
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.
 
Here is an adult look at Ron Paul's suggestion...

Ron Paul

Representative Ron Paul has hit upon a remarkably creative way to deal with the impasse over the debt ceiling: have the Federal Reserve Board destroy the $1.6 trillion in government bonds it now holds. While at first blush this idea may seem crazy, on more careful thought it is actually a very reasonable way to deal with the crisis. Furthermore, it provides a way to have lasting savings to the budget.

The basic story is that the Fed has bought roughly $1.6 trillion in government bonds through its various quantitative easing programs over the last two and a half years. This money is part of the $14.3 trillion debt that is subject to the debt ceiling. However, the Fed is an agency of the government. Its assets are in fact assets of the government. Each year, the Fed refunds the interest earned on its assets in excess of the money needed to cover its operating expenses. Last year the Fed refunded almost $80 billion to the Treasury. In this sense, the bonds held by the Fed are literally money that the government owes to itself.
 
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.

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 Weimar republic?
 
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.

This is misleading. The indivdiual bond holder will get all of his money back. The collective bondholders will never be paid off and they do not need to be paid off. The government borrows from Peter to pay Paul. Paul does get paid. Peter will get paid later from money borrowed from.... uhhh.... Mary. :) Dust in the wind....

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.

In reference to my emphasis... The problem is that this would then keep the value of the dollar low, which would mean Americans would have far less purchasing power and most of our imports would never return.

Defaulting on our debt would likely be catastrophic in the short term. I doubt the union would survive. However, Paul did not propose anything of the kind.
 
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.
 
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.

One major difference. If we had a commodity backed currency we would not have the inflation and unlike greece we can back our currentcy.
 
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?


Defaulting would not allow them to take any part of California. In fact, they are only able to buy land from American landowners because we honor the debt.

I don't think you know what happens in case of bankruptcy. What happens, is the dollar becomes monopoly money.

Inflating our way out of it leaves the dollar with some value, but not much. A landowner may or may not be willing to take it based on his understanding of its value. But every American would get a crash course in what money actually is.
 
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My vote is for doing what Paul actually suggested rather than doing what the misleading poll question suggests.
 
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.
 
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.

LOL...

Bankruptcy for a country is not like bankruptcy for you and me. We declare bankruptcy within a framework of legal protections for both debtor and creditor. 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.
 
A tip for the lefties. Ron Paul aint Michelle Bachmann.
 

NO. Because we will be right back where we started, plus in the future there might be some emergency and we will need to borrow money. We need to make some serious cuts to our spending and pay our debts. If you lost your job you would not continue to have Cable or Satalite TV with two or three hundred channels, you do not continue to buy name brand products, you do not continue to eat out in fancy restaurants, you would not continue to buy expensive coffee at Starbucks or Java Daves when you can buy a can of Foldgers and make it at home much cheaper, and you would do anything else to cut spending or reduce costs. Yet somehow the government thinks it is acceptable to do this.
 
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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.

Somebody still wondering how the WW3 will come to being? :doh

You cannot screw people and expect something different in return.
 
My first post and I am about to earn alot of hate haha.
Here goes: Ron Paul is my presidential candidate of choice.
...there I said it.
As far as the bankruptcy goes, can anyone honestly see this heading anywhere else? This country has defaulted 3 times in history:
-the civil war
-the 1930's
-1972 (I think it was 2...maybe 3, I'd have to look it up.)
We are in over our heads and if we don't do something we will be up a creek. Stopping spending on crap will help, yes, but i can't see it solving the problem entirely.
 
And welcome to the board. :)
 
Dear America; *Land That I LOVE!!!*

Please don't:

1) File Bankruptcy

2) Look at Me

3) Or Our Creditors

You guys can do this! (once the poor and downtrodden follow natural selection and die, of course)

Peace out;

The Rich
 
In which court would we declare bankruptcy?
 
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