Re: USA can go bankrupt

"Lim Ericker" <netpost@[EMAIL PROTECTED]
> wrote in message ...
> 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?

It's not clear that the "U.S." would become unwilling to pay. The U.S. is 
made up of individual investors, most of whom probably wouldn't realize
that 
their assets went to a foreign country.

Suppose you borrow $X from the All-America Bank, and invest it in risky 
assets. Those assets decline in value, so you declare bankruptcy, and 
All-America Bank takes your remaining assets, plus your house. You become
a 
renter, and all your income goes to consumption and paying off your 
remaining loan.

And that's that. You probably don't know that All-America Bank is owned by

foreigners.

Dan in Philly