America about to go Bust!

[rov1100]

///The $1.5 trillion dollar deficit in 2010 is clearly unsustainable, the $107 trillion in unfunded liabilities puts the United States on even shakier ground. While that number sounds huge, it doesn’t mean anything until you actually break down what kind of growth and tax revenue we’d need to pay for it. Former comptroller general of the GAO, David Walker, estimates it will require over 10% growth from now until the end of time; something that has never happened, will never happen and is little more than a pipe dream///

How will this affect the UK?

[Gromit]

Good job Communist China keep buying all those US bonds. Ironic though.

[Ankou]

i heard recently that their debt equates to around $46,000 per head of population. formidable, incredible.

[NoMercy]

I had some inside information about 6 weeks ago from someone who warned me that America was about to go pop. The informant is investing heavily in silver and bought £42,000 worth of it in one week. I didn't really pay much attention at the time.

[jno]

it's sustainable as long as people will keep lending money to them, as Gromit says.

[Clanad]

The really troubling part (from a moral standpoint) is that whenever a local or State government tries to make changes to balance their budgets (required by law) the loudest protestors who occupy the Capitol buildings and rampage in the streets are exactly the same as the ones we abhor watching in the news from Greece and other European countries... the union members... especially those holding government jobs.
Here in the U.S. it's illegal for the any of the various unions representing government employees to strike. But the other methods of dissruption are equally as effective. Problem is, it's their retirement and other benefits that are a primary contributor to the various govrnment's budget problems. In most cases the union members are being asked only to contribute another 3 to 5% to their benefit packages, but their having none of it.
Truth be known, our total debt at the National level is on the oreder of $106 Trillion (with a "T"). In 10 short years, the payment on the interest alone will equal 105% of Gross Domestic Product (GDP) or all income from production of goods and services in the country.
Although there's a world of blame to go around, the socialistic tendencies over the last 25 to 30 years (beginning with President Lyndon Johnson's Great Society) has to be the major problem... and those who's lives were supposed to be benefited by all the trillions spent are just as poor and ill adjusted to earning their own way as they ever were... In my opinion...

[jake-the-peg]

Socialist tendancies - that's a laugh

Why don't you tell the folks who was the last Persident to reduce the defecit Clanad?

Clinton wasn't it?

Take a look at the US defecit in historical terms

http://www.npr.org/ne...b/deficit/deficit.gif

The US debt was much higher after WWII as was ours.

The difference at the moment is that the US doesn't seem to have much of a plan for reducing it which is making people a bit twitchy.

Why because as David Walker demonstrates it can't be paid by growth and the US right wing is going to face up to the need for

Wait for it...


Tax raises!!!!!!!

Quick get the smelling salts half the Republican party's passed out, the other half are reaching for their guns!

[rov1100]

///it's sustainable as long as people will keep lending money to them///

Maybe its China that keeping the US afloat. Keeping US forces away from Taiwan might be a good bargaining chip?

[Gromit]

If the US did go tits up it would cause a worldwide depression. China would have no one to buy its shiny televisions and iPads.

[tara20]

When will the rating manipulators S&P, Moody's and Fitch downgrade the US to rubbish status like they've done to other countries?
I won't hold my breath.

[scotman]

I think Clanad has a point. Wasn't it the pension & healthcare liabilities of GM et al that contributed to their downfall?

[starone]

I am not very good at this so I would like someone to please tell me where all the money is. It hasn't just disappeared into thin air. It must still be out there somewhere, so who has it? I don't understand. There is still the same amount of money in the economy, still the same amount of things being produced and supposedly being purchased. How can it go wrong like this?

[TheTruthHere]

This is why

http://www.youtube.com/watch?v=koY6kXhQDQo

[scotman]

Starbuck

As I understand it the problem is that a lot of the 'money' in the system does not actually exist.

[starone]

I think you could be right scotman. And Thetruthhere - very good, concise and understandable - and true.

[TTG]

Has the UK ring-fenced a few million to help out the US yet? lol