DCWoody
Posts: 1401
Joined: 10/27/2006 Status: offline
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quote:
ORIGINAL: Fellow "So the next logical question once a country enters into bankruptcy mode, is who will be the trustee? Merkel already has a plan for that too – the Berlin Club." Extrapolating from here: So the next logical question once USA enters into bankruptcy mode, is who will be the trustee? The US doesn't have other nations backing up its currency in the way the eurozone countries do, if its debt gets too large people will stop using it as the default for trading oil etc, and US$ value will fall significantly....making the debt far cheaper to pay. This would happen far before the debt went beyond what the US can afford...ya ain't gonna go bankrupt, just fuck yourselves economically if ya borrow too much....but ya can probably take at least 200% GDP debt before there's any danger of that, and the scope for balancing the us govt. budget is huge. The bad thing for usaican population about the massive borrowing of your govt is ending up spending more and more of your taxes on debt interest rather than anything useful....I really wouldn't worry about bankruptcy, ain't gonna happen.
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