On Mon, 17 Mar 2008 06:15:46 -0700, Lim Ericker <netpost@[EMAIL PROTECTED]
>
wrote:
>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
>------------------------------------------------------------------
>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?
>----------------------------------------------------------------
The way this works is the USD becomes worthless and few if any
creditor country will accept the greenback to settle your bills.
Since you need im****ted stuff like oil you will have to hand over your
family jewels to get that stuff. That's when you realize that someone
has already got you by your balls. Hand them over your jewels or you
ain't going to get what you need. That's 19th century merchantilism
at its best. The developing world people are slow learners but they
learn good in the end.
No we have no wish to see the US sink for the giant sound of sucking
will take everyone down with it. At some point the US will have to
cry uncle and get the rest of the world to bail her out. The best way
is dropping more money into "worthless" US government paper. Creditor
countries are already shying away from them now. This bailout will be
at the price of allowing foreign entites own some of American assets
such as property, banks and other "strategic assets." I don't know
the details and I won't speculate. But that where the whole enchilida
is heading.
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