What happens if the US goes bankrupt?

agreed. we have to exceed the debt as a % of gdp that we made in ww2.

I have a few things I want to say about this subject.

The United States of America has been going broke for a while now. As one person pointed out on this post, GDP VS DEBT is not looking good. Other countries will eventually feel the recession left by a broken up america. This being all of the countries in the world no matter where you are. I know Ive said this in previous posts, but our currency system, simply does not work. I mean the only way it works, is for everyone to have constant growth. Ressources are not unlimited.

Furthermore the last 8 years of bush administration did not help relations with foreign countries. That being said, there are not a lot of countries willing to help out the U.S in this economic downturn. This because the administration cannot be trusted, economic stability being doubtfull and major giants falling. In short investors are shocked, people don't trust the system anymore.

That might be the reason they are printing out money making the currency worthless. There would be no one else left out to help them. Trust is something you cannot buy. It is something that is earned.

(opinion) This is why I feel that Obama will not be different in that regard. Allready too much money has been given out and people tend to fourget that its gone forever. Its gone to make the rich richer. I know I have no proof of this, but then again there are alot of funds that have quietly disapeared all over the place.

I am guessing that the elites of the country have been using gas prices and taxes to cover up the ENORMOUS losses everywhere. And in only a few months, if the wars starting everywhere do not rise the gas prices, we are in it for deep....(insert whatever word here)

Originally posted by BAZ752
reply to post by audas

 

Quite a direct post and one that, I must admit, I'm inclined to agree with (for the most part anyway). May I ask where I can find this article regarding the chief of M15's statement?

Cheers

It was on the news section of Yahoo! this morning. Cant see it anywhere now but i can vouch for quite a bit of what was said by BAZ752 > I think that some of it was an opinion though.

We still have a way to go before we exceed the all time debt to gnp (now gdp) levels of the 1940s. However, back then we a) had a gold standard (even tho it became illegal for ordinary citizens to own it in 1933), b) we were a more self sufficient (agriculturaly on the family scale and were net exporters on the macro-economic scale), c) we have managed to defer the normal correction of the business cycle (thank you "Maestro") and now face the end of an even larger (Grand Super) Cycle (Elliott Wave). Not good,,,,but the immediate danger is deflation not inflation (tens of trillions of dollars of imploding debt will trump the trillions of stimulus that the govt is going to inject). However, at some point that deflation (which is causing a shortage of dollars - supply vs demand) will lead to inflation by "deflating" (devaluation) of the currency itself. Fiat currencies ultimately fail in the long run but you have to admit that it is easier to do business electronically, etc than to run around with rolls of silver dollars in your pocket. Kinda bulky. Let's hope that the central bankers and G7 Treasury heads can let the air out of the balloon slowly while they work on a replacement for the Bretton Woods Agreement. We need a "change".

Well i have just done an essay on this issue so i am in luck. I think this would happen

Well one complete chaos, two the economy sinks, three no value in the American government or our dollar, four good bye government. Why do people declare bankruptcy? Usually it’s to make a fresh, clean, Start. So why can’t a country do it to get the value of their buck back up? Rebuild our word the American way!
No more outside help we rebuild ourselves, to be a better county. Bring back the pride of America and be dependent on ourselves rather than others nations. More clean energy, more solar and less oil. We will be bad for year’s maybe decades but the United States will be strong once again as the only independent stronger than ever super power. But with power comes a lot of work.