the united states can not theoretically go bankrupt, it's impossible. The fed can print more dollars and pay all our debts at any time, so (unlike individuals) it is completely and utterly impossible for the united states to go bankrupt.
What can happen is that china will quit shipping us cheap products because we can't afford it any more, our real post-inflation wages will go down, and the people in america will get poorer and poorer. I suppose this isn't incendiary enough, so this whole "usa goes bankrupt" fear factor phobia has to be made up.
I don't know about you, but having all americans becoming poor is a lot moer scarier than the usa government going bankrupt.
I'm amazed that people think we can't go bankrupt. And as tempted as I am to reply to people directly, I have better things to do with my time than to go back and forth with how if the Fed just keeps printing money endlessly that it would just be worthless, and no other countries would accept it. So, we may not be bankrupt, but it would effectively be the same. Our currency would be completely devalued to the point of worthlessness, and essentially leave us with nothing.
This is a good strategy to cease being a world power.
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(no subject)
Date: 2006-07-14 03:33 pm (UTC)(no subject)
Date: 2006-07-14 04:48 pm (UTC)(no subject)
Date: 2006-07-14 05:49 pm (UTC)What can happen is that china will quit shipping us cheap products because we can't afford it any more, our real post-inflation wages will go down, and the people in america will get poorer and poorer. I suppose this isn't incendiary enough, so this whole "usa goes bankrupt" fear factor phobia has to be made up.
I don't know about you, but having all americans becoming poor is a lot moer scarier than the usa government going bankrupt.
(no subject)
Date: 2006-07-17 03:43 am (UTC)This is a good strategy to cease being a world power.