Re: USA can go bankrupt

In article <cMNDj.514044$Ib6.116562@[EMAIL PROTECTED]
>, "Dan in
Philly" <djr8@[EMAIL PROTECTED]
> wrote:

> "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
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You still don't GET it, Dan.
The power to enforce payment of debts and obligations comes from
the barrel of a gun -- or the control of the Bomb.  I ask you again,
WHO will force a "bankrupt" U.S. to pay?
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