U.S. Is Bankrupt and We Don't Even Know It: Laurence Kotlikoff

U.S. Is Bankrupt and We Don't Even Know It: Laurence Kotlikoff

www.bloomberg.com

Let’s get real. The U.S. is bankrupt. Neither spending more nor taxing less will help the country pay its bills.

What it can and must do is radically simplify its tax, health-care, retirement and financial systems, each of which is a complete mess. But this is the good news. It means they can each be redesigned to achieve their legitimate purposes at much lower cost and, in the process, revitalize the economy.

Last month, the International Monetary Fund released its annual review of U.S. economic policy. Its summary contained these bland words about U.S. fiscal policy: “Directors wel

(visit the link for the full news article)

So the US itself has claimed it is bankrupt.

'But delve deeper, and you will find that the IMF has effectively pronounced the U.S. bankrupt. Section 6 of the July 2010 Selected Issues Paper says: “The U.S. fiscal gap associated with today’s federal fiscal policy is huge for plausible discount rates.” It adds that “closing the fiscal gap requires a permanent annual fiscal adjustment equal to about 14 percent of U.S. GDP.”

The fiscal gap is the value today (the present value) of the difference between projected spending (including servicing official debt) and projected revenue in all future years.'

The only way this can be fixed is to immediately double taxation or alternatively not follow through with spending promises.

What do you imagine will happen:

a. Increase taxation
b. Cut spending and cancel future spending pledges
c. Keep borrowing money to give in stimulus packages to corporate entities?

I think a mixture of all three, they have no choice. The US is screwed get ready for the double dip guys.

As the IMF has said the US is effectively bankrupt when will their credit rating be downgraded? Or will TPTB prevent this?

Get ready our American cousins these are the last days of the empire. Get cash out of those crooked banks and start stuffing your mattresses now.

www.bloomberg.com
(visit the link for the full news article)

FortAnthem posted it here (I think it's the same story):

www.abovetopsecret.com...

It's not looking good for the US at all. 200 Trillion, I can't even get my head around that amount of money.

I hadn't seen his post, but it seems to be a similar story. This story relates to the IMF disclosure that it considers the US bankrupt. The other story seems to be a discussion of the actual dollar number owed. Much the same thing but if anything this story gives that credence.

Apologies if i have read the other thread incoorectly but couldnt find a reference to the IMF saying US bankrupt.

reply to post by spacedonk


For the past 2 weeks I've been reading and looking at video demonstrations that all major nations have been bankrupt since 1933! Canada, USA, Australia, United Kingdom etc...

More indication of a double dip the chartists 'Hindenburg Omen' this time relating to the UK FTSE 100.

Originally posted by MAJESCOTT
reply to post by spacedonk

 

For the past 2 weeks I've been reading and looking at video demonstrations that all major nations have been bankrupt since 1933! Canada, USA, Australia, United Kingdom etc...

any links bud?

reply to post by spacedonk


Links

www.reddit.com...

Jefferson's Prophesy: www.barefootsworld.net...

Info on CANADA as a Corporation: inpursuitofhappiness.wordpress.com...

www.afn.org...

Google bankrupt nations, countries USA, Canada etc, you'll get the picture

It's about time for the banking cartel that owns and controls the real wealth to pick up and move on to the next market, if there's any left that is...

They will be confiscating gold again when the market finally breaks, there's little doubt in my mind to that.

[edit on 8/13/2010 by eNumbra]