posted on Nov, 18 2013 @ 02:45 AM
Unless the USA does something Amazing with its econemy you were stuffed even before the ACA.
Defaults going to happen unless you can grow your econemy fast like after the debts incured dureing the great depression/Worldwar 2!
There is one thing the US can do short term, and it's being suggested occasionally: force all 401K and IRA holdings to buy US Treasuries. Why would
this have some impact? The current US debt is about $16T, the current US 401K and IRA total is about $20T. This makes 401K's and IRAs a juicy
short term solvency target. It's actually being argued that Treasuries are safer and that, since taxes have not been paid on IRAs and 401Ks, this
will be legal as the government has part ownership of this money in some sense.
This might soften (I doubt it can eliminate) a collapse for a little while. But the committed future debt is closer to $100T. So, even if this is
done, the collapse will happen eventually. We can't grow the economy rapidly enough to cover this committed future debt. This Keynesian house of
cards will collapse. It's guaranteed -- the question is when, not if.