The US is Bankrupt

[Graemsay]

This article from Bloomberg says that the US is broke.

http://www.bloomberg.com/news/2010-08-11/u-s-is-bankrupt-and-we-don-t-even-know-commentary-by-laurence-kotlikoff.html

I've been saying for a while that the country is a real risk to the global economy. Looks like I'm not the only one to think that way.

 

[csc2]

lol, they have been for decades!

definitely nothing new here buddy!

why the world keeps following them is beyond me!

the us couldnt organize a chook raffle and balance a budget for that let alone an economy that year in year out is in the red.

the 'ol she will be right, we will just print more money is part of the reason why the US is in such disarray.....they wont be out of debt for decades if ever....

 

[avenger]

Watch it in realtime

http://www.usdebtclock.org/

 

[joycenmat]

Wonder if Russia will strike while the iron is hot!

 

[Francesco]

Wonder if Russia will strike while the iron is hot!

Why Russia? If any country has the wherewithals to strike it would be China with financial weapons of mass destruction.

 

[BayView]

This article from Bloomberg says that the US is broke.

http://www.bloomberg.com/news/2010-08-11/u-s-is-bankrupt-and-we-don-t-even-know-commentary-by-laurence-kotlikoff.html

I've been saying for a while that the country is a real risk to the global economy. Looks like I'm not the only one to think that way.

Maaaaaaaaaaaaate!

I saw this with my own eyes when we lived there.

No need to read a bloody news bulletin to work it out.

The average person is hocked to their top follicle in consumer debt, and still spending, the homeless and poor are multiplying exponentially, the rich are a growing minority with more than you can imagine and give 3/5ths of a care about the average penguin as mentioned above.

It's a case of the have's are lookin' out for themselves big time, and the rest can eat cake. Thank god for the few ultra wealthy who have a social conscience and give away billions to help their needy.

From the top...all the way down the attitude of "I've got mine" prevails.

On top of all that; they produce a few oranges and that's about it. Very little primary production for export, while the Society lives on escalating credit - gotta look like an L.A Celeb, or a UFC dood, or a "bro" you know. Sheesh.

Everything else is imported to satiate the obese masses who are primarily D.A.D.S (Dumb As Dog Shoit).

Over and out from your reporter (formerly) on the ground in LALA Land.

disclaimer; I really love American people; it's a shame what is happening to their great Country; they are being "dumbed down".

Now, I'm no Einstein, and don't profess to be - I regard myself as quite average, but I tell ya; I felt like a bloody smart guy over there.

The average person is encouraged - and trained - not to think past next payday, and wave the flag a bit harder.

"God Bless America" is the favourite saying for the average folk, who haven't a clue what is goin' down around them.

 

[grossreal]

simple question
who cares
china not a chance they have enough dollars as is
russia forget it they want the euro
india
to far away for them
so who

 

[Sunfish]

I think Francsco was referring to a military strike against the US. That's absurd.

What isn't absurd is the thought that the US will/must use their military might before it rusts. (It still exists today) If you read their history there isn't any problem they haven't solved at the point of a gun.

Independence? Easy make war on the Poms.

Slavery? Wage the most devastating civil war in history. BTW It was really an economic war, but a war none the less.

The Great War? Had to put the Lusitania in harm's way to justify.

WWII? Goad the Japanese into and (possibly) ignoring alarms about Pearl Harbour.

Vietnam? Stage the Gulf of Tonkin "incident".

Anyone who thinks the US will quietly wilt is disillusioned.

It is a nasty private opinion of mine that the Americans would approve, by poll, neuking "somebody/anybody" if they were told it would guarantee gas for their tanks.

 

[Piston Broke]

it's a shame what is happening to their great Country; they are being "dumbed down".

Now, I'm no Einstein, and don't profess to be - I regard myself as quite average, but I tell ya; I felt like a bloody smart guy over there.

The average person is encouraged - and trained - not to think past next payday, and wave the flag a bit harder.

... the average folk, who haven't a clue what is goin' down around them.

And you really think it's not that different here?
And many other places for that matter.

 

[beeroll]

It is a nasty private opinion of mine that the Americans would approve, by poll, neuking "somebody/anybody" if they were told it would guarantee gas for their tanks.

I think you mean was a private opinion of yours...

 

[Francesco]

I think Francsco was referring to a military strike against the US. That's absurd.

What isn't absurd is the thought that the US will/must use their military might before it rusts. (It still exists today) If you read their history there isn't any problem they haven't solved at the point of a gun.

Independence? Easy make war on the Poms.

Slavery? Wage the most devastating civil war in history. BTW It was really an economic war, but a war none the less.

The Great War? Had to put the Lusitania in harm's way to justify.

WWII? Goad the Japanese into and (possibly) ignoring alarms about Pearl Harbour.

Vietnam? Stage the Gulf of Tonkin "incident".

Anyone who thinks the US will quietly wilt is disillusioned.

It is a nasty private opinion of mine that the Americans would approve, by poll, neuking "somebody/anybody" if they were told it would guarantee gas for their tanks.

No. I was referring to financial, not military. US owes China big time and can be bought just like Australia can be bought. Why fight? I think China is too clever for that.

 

[VYBerlinaV8]

And you really think it's not that different here?
And many other places for that matter.

I'd say it's absolutely the same here, but that doesn't excuse it.

 

[csc2]

DADS

Thank you for that one...I have now officially added that one to my vocabulary...will come in very handy at work daily!

 

[BayView]

And you really think it's not that different here?
And many other places for that matter.

What makes you think I was singling out the US while there are others similar. I know there are others.

But the issue was the US if I remember correctly and that's only what I was referring to.

Start up another thread of yer own about life here in Aus if you want and we'll go hammer and tong at it over in that thread.

And yes; it is the same here from my observations. Not as bad as the US (yet), but our penguin masses seem to want to follow the US trends in every bloody form, so it's inevitable.

 

[joycenmat]

Where did all the smart people go!

Australia will be fine until the next generation grows up

And we have barely any manufacturing bases either. Didnt they decline in the 70's? As we moved to a more laissez faire economy?

If you think about the dynamics in the international arena and all the countries and their current issues it can be daunting to think of say ten years time!

However BV and PB right. This thread was re the US and as was BV reply. And PB as we see the influence here. If schools dont provide a financial education then parents have to.

So did the US crumble over the war on terror and the GFC or was it a long time coming???

 

[Sunfish]

No. I was referring to financial, not military.

They are certainly vulnerable and the Chinese can and will play them like a fish. I think the Pentagon knows this and that Congress knows too. Wall St pretends it's business as usual (as you'd expect, they would play roulette as the water comes up to their knees) but Main St still think they rule the world.

I'm not sure it is in anyone's interest to force the issue though. Better to allow them to die the death of a thousand cuts.

 

[Sunfish]

It seems there is a bit of interest about this. For anyone who want's to read further there is a wealth of qualified opinion out there but it is not mainstream so many will be reluctant to go there. Don't be.

Almost all who worry about the US turn to gold as a safe haven so the gold-bug sites kitco.com or 321gold.com are a good place to start. Just follow the links. For interviews try Jim Puplava's Financial Sense Newshour or King World News. I've been following these guys for many years so there isn't much that happens that is a real surprise to me.

 

[WinstonWolfe]

Everything else is imported to satiate the obese masses who are primarily D.A.D.S (Dumb As Dog Shoit).

I've spent a lot of time on the east coast BV, and it is pretty much the same over there. No dearth of obesity, ignorance, and superficiality. Nevertheless, have you noticed more Aussies successfully modeling themselves on Americans? Why can't Australia have its own Paris Hilton and Lady Gaga (or Bill Gates and Warren Buffett)?

disclaimer; I really love American people; it's a shame what is happening to their great Country; they are being "dumbed down".

I am fond of America too. The 5% who are switched on are really switched on, and have no peers here. Their positive and entrepreneurial mindset, and willingness to take a risk with capital on new business ventures benefits the world in ways most Australians will never understand in our more socialized political environment.

Nevertheless, their political and govt process is certainly more prone to corruption than ours, if you overlook the unions' control of Labor. I can't ever imagine a US president being sacked by unions.


As for the US being bankrupt, based on govt promises to deliver future services, yes it is. And Australia is in the same boat. We cannot afford current pension levels and health services in the future. So should we be laughing at the US? I don't think so. Instead we want to be thinking very seriously about who will defend us if ever attacked and learning from their mistakes.

 

[Intrinsic_Value]

I think its naive to write off the US.
The US adapts over time.
Think about it for a moment, who is dummer? the people who lend or the people who borrow?

Whats been the most efficient way of creating 'growth' over the last 20 odd years? borrow and spend.
Now this growth might have been artificial, but it was allowed to happen, and who are the fools?

We might becoming upon a time of structural change, whereby this doesnt work anymore, but would i write off the US?
No.

 

[WinstonWolfe]

I think its naive to write off the US.
The US adapts over time.
Think about it for a moment, who is dummer? the people who lend or the people who borrow?

Whats been the most efficient way of creating 'growth' over the last 20 odd years? borrow and spend.
Now this growth might have been artificial, but it was allowed to happen, and who are the fools?

We might becoming upon a time of structural change, whereby this doesnt work anymore, but would i write off the US?
No.

I'd rather have been invested in China in the last 15 years IV.
The US has a history of adapting and being entrepreneurial, but they will go through a lot of pain and belt tightening before their horizon is brighter than China's or Brazil's imho.

A fat, lazy, and unskilled non manufacturing west, which cannot be turned around quickly, ensures a bright future for Brazil and China.