US could be going bankrupt

#1
Hmmmm!!!

Daily Telegraph said:
US 'could be going bankrupt'

The United States is heading for bankruptcy, according to an extraordinary paper published by one of the key members of the country's central bank.

A ballooning budget deficit and a pensions and welfare timebomb could send the economic superpower into insolvency, according to research by Professor Laurence Kotlikoff for the Federal Reserve Bank of St Louis, a leading constituent of the US Federal Reserve.

Prof Kotlikoff said that, by some measures, the US is already bankrupt. "To paraphrase the Oxford English Dictionary, is the United States at the end of its resources, exhausted, stripped bare, destitute, bereft, wanting in property, or wrecked in consequence of failure to pay its creditors," he asked.

Full text here: US 'could be going bankrupt'
Well, apparently it can only afford to provide sandwiches to US citizens (on production of their passport) on a 'refugee' ship out of Beirut.
 
#3
NEO_CON said:
This type of financial crisis is facing all western style welfare states. The US's financial situation is better than most.
But not for long. How much longer can they sustain the massive cost of the Israeli ooops, I mean Iraqi situation?
 
#4
This type of financial crisis is facing all western style welfare states. The US's financial situation is better than most.
Could you provide an example Neo-Con?

Just interested to know which "Western" nations have a deficit of this size or even close to it, and China holding the IOU's?
 
#5
PartTimePongo said:
This type of financial crisis is facing all western style welfare states. The US's financial situation is better than most.
Could you provide an example Neo-Con?

Just interested to know which "Western" nations have a deficit of this size or even close to it, and China holding the IOU's?
Take a look at our own, consumer credit in excess of £1 trillion, thats a lot of zero's
Several million people unable to meet their financial commitments.
And a state machine running wild with taxation and expenditure
 
#6
PartTimePongo said:
This type of financial crisis is facing all western style welfare states. The US's financial situation is better than most.
Could you provide an example Neo-Con?

Just interested to know which "Western" nations have a deficit of this size or even close to it, and China holding the IOU's?
Really good question, PTP! I particularly like to read about the "better than most" situation.

MsG
 
#7
Really good question, PTP! I particularly like to read about the "better than most" situation
The US's current financial situation is better than most Western nations.

The budget deficit in the US is not massive. The Bush administration this week cut its forecasts for the fiscal shortfall this year by almost a third, saying it will come in at 2.3pc of gross domestic product. This is smaller than most European countries - including the UK - which have deficits north of 3pc of GDP.

I do not know what future commitments other western nation have, but the US's welfare state is less extensive than other western nations and it has a growing population . I am assuming because of those facts that the future comments of the US ,while massive are less massive than other western nations on a per capita basis.
 
#8
Nobody is claiming that the end is neigh, just that the current economic policy is likely to have serious future consequences. Here's another from today's BBC.

BBC said:
US Fed warns of inflation risks

US Federal Reserve head Ben Bernanke has warned that while US economic growth is slowing, rising oil prices could add to inflationary pressures.

Mr Bernanke told Senate members that higher energy and other raw material prices could "sustain inflation".

Full text here: http://news.bbc.co.uk/2/hi/business/5195276.stm
I don't like inflation. Do you? But it's one clever trick often pulled by governments to lower their own borrowing in real terms. Beware!
 
#9
The US's current financial situation is better than most Western nations.
As you keep repeating. Examples please? Or are we using the "debt is the new wealth" arguement so beloved of certain 'experts'?
 
#10
PartTimePongo said:
The US's current financial situation is better than most Western nations.
As you keep repeating. Examples please? Or are we using the "debt is the new wealth" arguement so beloved of certain 'experts'?
The number 3 (UK) is greater than the number 2.3 (US). QED. See above!!! :)
 
#12
As you keep repeating. Examples please? Or are we using the "debt is the new wealth" arguement so beloved of certain 'experts'?
I gave you the debt example 2.3% of GDP as opposed to 3 % of GDP and it it higher in other European countries
Unemployment in the US is less than in all major European states except the UK
Taxes are lower on the average than in European states
Per-capita income is greater
growth in GDP in the US has been greater on the average than in Europe so
financially the US is better off than our European counterparts


If the European Union were a state in the USA it would belong to the poorest group of states. France, Italy, Great Britain and Germany have lower GDP per capita than all but four of the states in the United States. In fact, GDP per capita is lower in the vast majority of the EU-countries (EU 15) than in most of the individual American states. This puts Europeans at a level of prosperity on par with states such as Arkansas, Mississippi and West Virginia. Only the miniscule country of Luxembourg has higher per capita GDP than the average state in the USA. The results of the new study represent a grave critique of European economic policy.

http://www.timbro.com/euvsusa/pdf/EU_vs_USA_English.pdf
 
#14
Well they are already morally bankrupt so finish it off with fiscal bankruptcy
 
#16
I have mentioned before the US administration no longer publishes its figure for the number of $ notes in circulation.
Without this figure it is impossible for Finacial Experts to calculate a true figure for inflation.
john
The reason give for not collecting is to save $1 mill a year.
The figures are still colated just not Published.
 

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