You think Obamacare is bad? Just wait!

crazyewok
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.

reply to post by BayesLike


You Marxist's really scare me. Your plan actually ends with the confiscation of all IRA and 401K monies. That's what they did in Argentina. It was the final nail in the coffin that secured their third world status for all eternity. Capital flight ensued and they went bankrupt anyway (along with the hyperinflation).

You do realize that the leftists have already proposed confiscating US savings. How can you lib.s think that this is a viable solution? Don't any of you pay attention to history or how basic economics works? Do you think Venezuela is doing well now with their socialism, wealth confiscation and price controls? A country that has a huge percentage of the worlds oil resources can't even feed their own people. This my friends is the fruit of big government socialism.

It will end badly here. Forcing me to buy US treasuries is stealing my money. I'd prefer to short the dollar and move my mony oversease to a fiscally responsible (aka not leftist) country. I'll even take the tax hit to do so rather than have you arsewipes steal my money.