The way thing is going of course US don't wanna anyone be able to beat them in war. You know, we all money they are borrowing the day will come noone will borrow them more and than they will discover "terrorists" in countries that don't wanna give money to bankrupted country...
technically, US can't go bankrupt. as far as I know, all its external debt is in US dollars. (PLEASE CORRECT ME IF I AM WRONG...THANKS). if nothing else works, US will print US$ and repay its debt. the consequences of money printing are a different matter.
tehnically, US CAN go bankrupt by definition of bankruptcy: Regarding printing US dollars: the day when world drops dollars as trading curency (oil in first place) US will go bankrupt. Toilet paper will be more expencive than dollars.
Hyperinflation != Bankruptsy US still has a lot of good companies which can be sold off to foreigners. It is a developed market and has a highly skilled and innovative Tech sector. One big invention, something on the scale of the Internet, and US can rebound. Maybe something new in the field of Energy. Anything can happen.
that's what I am saying. US has to give US$ back to its creditors. if US$ is "toilet paper", the creditors will be getting "toilet paper". no government with debt in its own currency has ever gone bankrupt. countries default on loan repayments bcoz they have debts in external currencies like the US$, which cannot be printed by them.
They will try to print more money to pay off the debt, greatly devaluing the dollar and hampering their credit worthiness. China might get nasty about the printing of more money, but then, there isn't anything they can really do anyway apart from whinge.
Thats interesting to hear about taking credits in your own currency. I guess that most of US debts will be forgotten and they will just repay a small part.
let me try.... the way things are going, US doesn't want anyone to be able to beat them at war. with all the money that US is borrowing, a day will come when US won't be able to borrow more. then US will accuse countries of terrorism if they don't give money to bankrupt US. only the OP can say if my interpretation is correct.....
In my opinion it won' happen anytime soon..If US goes bankrupt she will take a few countries with her(including China)..China mostly economy survived by export cheap goods to US, also cheap labor by big US cooperations and some others. So it won't be happened soon.
It's impossible for the US government to go bankrupt. The US owns real estate. The US owns as much as 50% odf some of the Western US States. There are also startegic reserves of oil, grain, oil and gas rights, mining rights and gold. More likely what would happen is the the US currency get inflated to a rate where it's 5 or 6 dollars to the Euro.
There won't be bankruptcy per se... But when the economy continues to weaken and the dollar plunges, there would be severe unrest in the US. The economy is heavily dependent on cheap imports, which will no longer be cheap in the face of weak dollar. And also pressures on Social security net, and proposed Universal healthcare... you will see a meteoric rise in interest rates as well as taxes. Commercial real estate could collapse. The American dream will be dead. Add to it millions of illegal aliens trying to cross the border from Mexico after their oil production dwindles around 2014, and you have a recipe of a severe collapse. The economy would still be better than 80% of the countries, but it will only be a shadow of its glorious past.
Wiping out the dollar and replacing it with the $N1 or new dollar could improve the financial position of the US. Cheap imports are a big problem in the US. Most of the goods are thrown into the garbage after a few months. The US also needs to produce and export. Otherwise all we are doing is printing money. I estimate that at least 50% of illegal aliens are receiving some sort of welfare. I really believe that the welfare is what draws a substantial portion of illegal immigration. I've heard of cases of illegal aliens that have returned to Mexico to work and have left their families behind in the US.