Re: USA can go bankrupt

In article <3MsDj.67847$us.36948@[EMAIL PROTECTED]
>, "Dan in
Philly" <djr8@[EMAIL PROTECTED]
> wrote:

> "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
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so tell us, Dan in Philly -- IF the U.S. did, in your worst case
scenario, become "bankrupt" and be unable or unwilling to pay its
obligations,  WHO would  become the Receiver and "force" the U.S. to
pay? 
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