Obama’s first year budget is projected to have a one trillion dollar deficit. When will the US go bankrupt?
Will the US collapse quickly just like the financial institutions did?
Who will the politicians blame, the rich for not paying enough taxes? If the government took all the money and assets of every american, they could not pay off our current liabilities.
Posted January 30th, 2010 in How To Go Bankrupt. Tagged: assets, collapse, current liabilities, financial institutions, money, politicians.
The 2007 GDP was 13.8 Trillion dollars so the 1T budget deficient isn’t as big as the deficits we ran in WWII as a percentage of the GDP. The danger is in losing trust in our money supply – if the Fed prints too much, inflation will kick in – and may bring other ‘big investors’ in the US like the Chinese and Arab sovereign funds to pull out – they are the ones who own our debt right now. If they decide to sell off, there isn’t anyone else with pockets deep enough to buy it – which could put us in bad straits as a nation. Unfortunately the government will prop up the financial markets, removing the discipline of a free market, because we’ve allowed the investment banks and other entities to become too big to fail. I’d like to see the use of anti-trust laws to break apart some of these huge companies so they can no longer break the economy if they fail.
January 30th, 2010 at 2:13 amIt can’t, when you print your own money.
January 30th, 2010 at 2:13 amhoney, if lil bush hadn’t already raised that cap several times, we would already BE bankrupt.
January 30th, 2010 at 2:13 amWe already are. Do you think we will ever climb out of the 10 trillion dollar debt we currently have, more than half of that thanks to the Bush administration?
January 30th, 2010 at 2:13 amHow do you know what his first year budget is???
Perhaps you are under the mistaken notion that every one of Obama’s prgrams are going to be instituted his first year but none of the budget cuts he has proposed.
January 30th, 2010 at 2:13 amAbout eight years ago when bush squandered the budget surplus and started borrowing money from the Chinese to pay for his war in Iraq.
January 30th, 2010 at 2:13 amIt is already! Where do you think the biggest pressure on the credit markets is? It isn’t just Joe the Plumber living beyond his means, it is all our governments.
January 30th, 2010 at 2:13 amI’m afraid you do not know how rich the rich really are. They are rich beyond belief. It is just not very well known how many people and how much money is held by the wealthy and corporations of America.
January 30th, 2010 at 2:13 amRight now, China and other investors have painted themselves into a corner. They have to keep lending and buying up T bills to protect their investments. Stop lending the money, the fed will start printing, that devalues the dollar and their investment.
Depends how long the world’s investors will stay the coarse and protect themselves. When that happens, the treasury bills become due in 20-30- 40 years, and those under 40 will pay. If the dollar has devalued, could cost up to 80-85% of their income paying it off. God help you if you’re under 40.
January 30th, 2010 at 2:13 amtaxes go up.. regardless of whatever happens
January 30th, 2010 at 2:13 am