American Capitalism’s Great Crisis

[whell]

Originally Posted by nailer

I read/hear regularly that we are bankrupt as a nation.

How do you know that if we default on our debt we won't be able to reorganize and in effect get a new credit rating? I think we could. As the largest debtor by far, we own the bank.

I think it would kick our house of cards all the way to the curb and beyond. The economy is growing at a mere 2% on average. To support the growth of our spending and mounting debt, it would have needed to have been growing far faster than that over the last 30 years, and continue on that pace into the future. There's no sign that a growth rate like that is achievable at this point with our financial system in its current state of disrepair.

In otherwords, if an organization reorganizes its debt in bankruptcy, there's a agreement by creditors that there's a plan to pay back a share of the debt and that the organization has a plan to return to solvency.

What's our gov'ts plan?

[finnbow]

Originally Posted by whell

I think it would kick our house of cards all the way to the curb and beyond. The economy is growing at a mere 2% on average. To support the growth of our spending and mounting debt, it would have needed to have been growing far faster than that over the last 30 years, and continue on that pace into the future. There's no sign that a growth rate like that is achievable at this point with our financial system in its current state of disrepair.

In otherwords, if an organization reorganizes its debt in bankruptcy, there's a agreement by creditors that there's a plan to pay back a share of the debt and that the organization has a plan to return to solvency.

What's our gov'ts plan?

We don't need a plan. As long as creditors are willing to buy our bonds at 2%, there's no issue.

[Dondilion]

Originally Posted by finnbow

We don't need a plan. As long as creditors are willing to buy our bonds at 2%, there's no issue.

Basically since we control the major world institutions and the perception that as long as you are nice to us we will provide a safe haven for you and your wealth.

[MrPots]

Originally Posted by Dondilion

Basically since we control the major world institutions and the perception that as long as you are nice to us we will provide a safe haven for you and your wealth.

"We"?, or big business?

[Dondilion]

Originally Posted by MrPots

"We"?, or big business?

Oh Lawd MrPots you know what the "We" means.

[nailer]

Originally Posted by finnbow

We don't need a plan. As long as creditors are willing to buy our bonds at 2%, there's no issue.

We are on the path to finding how long can you borrow your own money.