Ron Paul: "The U.S. Government Must Admit It Is Bankrupt"

shortie · Jan 10, 2011

Quote from trefoil:

The dogs. The world is going to the dogs.

"Thousands of years in the future, the canine population of planet Earth, along with their robot helpers, sit around campfires and tell each other fables that relate, most controversially, how they owe their ascendance to an extinct and perhaps mythical species of benevolent, if misguided, humans. A bleak, melancholy portrayal of humanity's prospects for survival, "City" is unusual not only for its dystopian vision but also for its often pastoral storytelling. ..."

http://www.amazon.com/City-Clifford-D-Simak/dp/188296828X/ref=ntt_at_ep_dpi_3

trefoil · Jan 10, 2011

Quote from shortie:

"Thousands of years in the future, the canine population of planet Earth, along with their robot helpers, sit around campfires and tell each other fables that relate, most controversially, how they owe their ascendance to an extinct and perhaps mythical species of benevolent, if misguided, humans. A bleak, melancholy portrayal of humanity's prospects for survival, "City" is unusual not only for its dystopian vision but also for its often pastoral storytelling. ..."

http://www.amazon.com/City-Clifford-D-Simak/dp/188296828X/ref=ntt_at_ep_dpi_3

Very cool. I'll have to read that book.

rew · Jan 10, 2011

Quote from clacy:

Were it not for the two facts that we hold the world's reserve currency and that we have military supremacy, I would say yes, we are currently bankrupt.

With those two facts however, we likely have a little more time to get our act together. Whether we act or not, is unknown.

Just how is military supremacy going to save us from bankruptcy? Is your grand plan to invade a bunch of other countries and steal all their stuff? Good luck with that -- we can't even pacify Afghanistan. The truth is that our military empire is a major part of what is bankrupting us, as Ron Paul has pointed out numerous times.

rew · Jan 10, 2011

Quote from FerdinandAlx:

The US government can declare dollars into existence. Let there be dollars... and *poof* enough dollars exist to service an infinite amount of debt.

Debt is not issued to finance the Federal Government. In fact the government can continue to deficit spend without issuing debt at all. Why is debt issued? It's a government service to provide the private sector with a RISK FREE rate of return. It's a price anchor and monterary policy tool, and above all a way to meet the needs of rent seeking financial institutions.

Now at this point it's usually conceded that the government can't go bankrupt and the debate shifts to inflation...

The result of paying for everything by printing more money is hyperinflation. I regard that as equivalent to default and bankruptcy.

bearice · Jan 11, 2011

Quote from Specterx:

Say what?

The biggest danger is what you cannot see.

bearice · Jan 12, 2011

Quote from bearice:

Somebody is angry, tired and ashamed. December 26, 20004 magnitude 9 Earthquake was a warning. But nothing changed for the past 6 years. Somebody has suffered for past 6 years. Now the world will suffer.

When something blows up somewhere, world people will understand properly.

The Bible do not lie, is the word of God. This world should give rise to the kingdom of Christ, the âcleaningâ is painful, but Jesus will restore everything. Who want to go with Him? Repent and join to Christ that you will have living with the eternal God, righteous and loving, the Lord of all the law of life, of love and peace, the true Light.

Swearing, and lying, and killing, and stealing, and committing adultery, -they break out; and blood toucheth blood.

For this shall the land mourn, and every one that dwelleth therein shall languish, with the beasts of the field, and with the fowl of the heavens, yea, the fishes of the sea also shall be taken away." (Hosea, 4:1-3)

REST IN PEACE

Runningbear · Jan 12, 2011

Quote from shortie:

Is USA bankrupt?
Yes 27 64.29%
No 15 35.71%

I am not an economist, but those who voted "Yes" must not have any clue.

Answer my question:

If US is bankrupt, what about the rest of the World? What % of the countries are in the worse shape than US? 1%, 10%, 50%, etc.?

Technically you're bankrupt if the value of your debts exceeds the value of your assets. The US can print money to pay its debts, but pretty soon, holders of US government bonds will demand higher premiums to cover the losses to inflation. Remember, the government can't service the debt if they can't sell treasuries. Interest rates will rise to 10% then 20% then 30% at which point the entire system will break down.

Unfortunately, The UK, France, Portugal, Ireland, Spain, Greece and Italy are in much the same predicament. Greece and Portugal will goes first and we will probably see a domino effect.

But if the US goes, everyone goes. We're talking about a total collapse of the economic system worldwide.

bearice · Jan 12, 2011

Quote from Runningbear:

But if the US goes, everyone goes. We're talking about a total collapse of the economic system worldwide.

The world economy is a "human body" and USA is the "head" of this body.

A powerful blow to the head crashes the whole body.

Scataphagos · Jan 12, 2011

Quote from Runningbear:

"... if the US goes, everyone goes. We're talking about a total collapse of the economic system worldwide.

Which is why Odumbo want's to deficit-spend another $Trillion. Quick! Before the money becomes worthless... :mad:

dtan1e · Jan 12, 2011

thought of this strange scenario the other day, wonder if anyone have any better insight, say if the Fed prints to infinity, purchases ALL the treasuries and then wipe off the whole US gov't debt, what happens then?

say if the Fed prints to infinity and purchases every single stocks in the market, and say if the USD becomes junk, that's still alright since now the Fed a.k.a. Banks holds every stocks, and leave rest of whole holding worthless papers, what happens?