In article <l8sst394j1sig68tf3rdu671qvs9t82jik@[EMAIL PROTECTED]
>, PaPaPeng
<PaPaPeng@[EMAIL PROTECTED]
> wrote:
> 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.
--------------------------------------------------------------
BUT YOU STILL HAVEN'T COME TO GRIPS WITH THE PROBLEM:
WHO OR WHAT WILL "ENFORCE" OR "FORECLOSE" ON U.S. ASSETS?
-----------------------------------------------------------------
|
