August 11, 2009 23:57


Washington Times, August 11, 2009

"Ask any accountant, banker, or anyone remotely familiar with simple accounting knowledge if we (USA) can service this debt, and the collective answer is a resounding "no." Any business with these ratios would be a complete basket case, hopelessly bankrupt. "
"We are collectively broke. It is a horrible legacy we are leaving to our children"


The United States is functionally bankrupt. Our collective capacity to deal with this astonishing fact is seemingly nonexistent. Our national politics have become show business, exhibiting a complete refusal to strategically respond to this reality..........

http://www.washingtontimes.com/news/2009/aug/11/we-broke-the-bank/


Thomas Jefferson once said: "I believe that banking institutions are more dangerous to our liberties than standing armies . . . If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] . . . will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered . . . The issuing power should be taken from the banks and restored to the people, to whom it properly belongs."




Is the United States Bankrupt?

 

Morally yes.

Fiscally no.

We still have sufficient assets and earning capacity to service our debts. But we are severely restricting our ability to take on new responsibilities. Something that our Congress seems to ignore.

 

Pretty much what he said, yeah. However, at the rate we export our production capabilities coupled with the rate we spend, we're headed to a very bad place. It's going to get worse before it gets better.

-S-

 

The Federal Reserve will just print out even more Money and loan it to us.

The current system really does suck.

 

The current system is what we have, it is functioning.

What is not functioning is our Congress and other world political powers, who seem to think that there is no limit to what they can spend.

What is not functioning is personal responsibility, gotta have it now, gotta have the best, gotta do what the other guy does. Money? who needs money? someone will cover the debt.

 

last nigth while in the forum i was watching on tv an american program called 60 minutes. it had a very interesting report on an air force base outside vegas where the pilots when flying airplains by remote control that are actually in afganistan and iraq. the amount of money they said they were going to spend next year doesn´t sound like a bankrupcy case to me !

portugal is buying submarines !

economical crisis my ass !

 

that just about sums it up.


this thread is now closed.

 

I'm not entirely sure it is functioning. Look at the mess our economy is in. We can't even have a strong economy when the government is pumping trillions of dollars into it every year.

Absolutely. Truer words were never spoken.

That seems to be one of the biggest problems in the country right now. I don't know how it is in the rest of the world, but here in the US, it seems like going into debt is the national pastime. It puts us fiscally responsible people into a disadvantage because we're only spending money we have, not money we don't have. I even manage to save a little each month, but when I hear things like the government stepping in to bail out those who have made poor decisions, I almost wonder why I even bother. My money, that I earned with my own hands, is going toward taxes that get spent on people and organizations that squandered their own.

That's why I'm a conservative. I say, cut most of the government spending, take some time to pay off the national debt, then lower the income tax or abolish it altogether. The government should not be in the business of taking care of people or organizations. It should simply provide an environment where they can take care of themselves. And if they don't, let them suffer the natural consequences. Don't take away from me in order to support their foolish choices.

 

It's functioning?

You think a monetary system whereby the dollars in your pocket have been sold to the US government at interest is functioning? The Federal Reserve prints a dollar, and the US Gov't buys it for more than a dollar. You are instantly in debt - a debt from which it impossible to recover without the complete and total abolishment of the Federal Reserve.

The whole point of your war of independence was to extricate yourself from the Bank Of England, which was serving exactly the same purpose. Now, a select few have betrayed the ideals of your founding fathers, and plunged an entire nation hopelessly and irrevocably into debt.

It's shameful, and calculated.

 

You can't pay off the national debt.

The money you need to pay it will come from the Federal Reserve... which puts you right back in debt. You, like Britain, are srewed.

 

Now that is so true

 

Well, Lor, at least the money we buy off the BoE actually (somehow) keeps the NHS from dying completely.

For which I am eternally grateful. I don't fancy being blind.

 

What the NHS are still in business then

 

Not quite factual, our money is not minted until it has been deemed necessary and the t-bills have been sold to cover the increase in total dollars in circulation, plus a reserve.

The fallacy in your argument comes from the fact that no global currency, whoever prints it, is based on hard assets held in reserve. They are promissory notes, payable on demand for goods and/or services in kind, or for the exchange of foreign promissory notes of equal value.

There is nothing wrong with this system, providing the issuer is able to deliver in kind exchange for the notes issued.

 

Again this is a false premise. The debt can be paid off, in fact it has had several times been greatly reduced, by the GNP exceeding the imports which increases the value of the currency.

It is absolutely possible to pay off the debt, it is unlikely given the spendthrift attitude of the US Congress and similar world legislatures.

 

Well, there's your problem, innit?

 

Not a problem, because we we are able to deliver.

 

Yes and you can tell we are all fucked because shit is rolling uphill now.

 

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So if you were to go to the bank and request your money in gold, you'd get it?

Of course you wouldn't. Your bills are worthless, the same as ours are here in Britain. The whole system is surviving based entirely on the fact that it is very unlikely that everyone is going to want their money all at once. The money you save is loaned to someone else; the money you borrow is your neighbour's life-savings.

Unless you convert your capital to a physical actuality, you own nothing, you merely borrow it off the Government.

How is this an acceptable system? It survives only because most people don't have a clue.