Re: USA can go bankrupt

"Flouride Water" <flouride.water@[EMAIL PROTECTED]
> wrote in message 
....
> It is not possible fo the USA to go bankrupt -- The USA can print 
> unlimited amount of US Dollars!

But the US can't print yen, euro, etc.
For the US to go bankrupt, the following would have to happen:
1. US banks, cor****ations, people all start borrowing in foreign currency
2. Much of those borrowing are spent on consumption, the rest are put into

overpriced investments.
3. Those investments decline in value.
4. The amount we owe to foreign creditors exceeds the value of our
invested 
assets.
5. Foreigners own the US

This could take a while. The value of US capital is around 50 trillion 
dollars. Right now we borrow about 2,3 trillion from the rest of the world

(and have 1,2 trillion invested in ROW). It could take a long time for our

borrowing to exceed our wealth.

Dan in Philly