Telegraph UK: United States "COULD BE GOING BANKRUPT"

[Bluebear]

The United States is heading for bankruptcy, according to an extraordinary paper published by one of the key members of the country's central bank.

A ballooning budget deficit and a pensions and welfare timebomb could send the economic superpower into insolvency, according to research by Professor Laurence Kotlikoff for the Federal Reserve Bank of St Louis, a leading constituent of the US Federal Reserve.

Prof Kotlikoff said that, by some measures, the US is already bankrupt. "To paraphrase the Oxford English Dictionary, is the United States at the end of its resources, exhausted, stripped bare, destitute, bereft, wanting in property, or wrecked in consequence of failure to pay its creditors," he asked.

According to his central analysis, "the US government is, indeed, bankrupt, insofar as it will be unable to pay its creditors, who, in this context, are current and future generations to whom it has explicitly or implicitly promised future net payments of various kinds''.

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2006/07/14/cnusa14.xml&menuId=242&sSheet=/money/2006/07/14/ixcity.html

[GregD]

1. Thanks W

Really fucking appreciate it...

[FUGW]

2. I bet these Mother F-er's think when the shit hit the fan here they

Can really take over. Damn talk about "miss-under estimating" the American people.

[cliss]

3. I have suspected this -

for about 4 years now. It's really not a secret - this is known among economists, banking people, others in finance. They just don't tell you - because they're trying to figure out what to do.

Stan Goff has written extensively about this. www.fromthewilderness.com gives a really good description of what's to come. I recommend that everyone who is eager to survive the next few years (I am) should read this stuff.

The Government will tell you 0, absolutely nothing about this.

By the way, George Bush did not create this mess. This stuff has been going on for decades (our slide into bankruptcy). Bush was just the tumour that developed inside the patient and sent him to the morgue.

[unpossibles]

4. I see this as the inevitable result of the Cold War stupidity

Just as the Cold War (and other conflicts, especially those in the Middle East with an undefined enemy... ) helped to destroy Russia's economy and ruin its infrastructure, so it has done to us as well.

[Dover]

5. The very wealthy are well positioned to buy up everything when values

completely collapse. The dollar has been losing value for some time, but has been imperceptible due to the gradual slide. Operating sort of like the lock system in Panama....slow lowering of the water keeps the boat afloat and unaware of the changes...unless you are watching the horizon line.

And that will be the end of the middle class who foolishly and quietly went down with barely a peep.

[Bluebear]

7. 'who foolishly and quietly went down with barely a peep'

Word.

[sweetheart]

6. bankruptcy pain

A BBC 4 world service report this morning featured a report of a nation where today, petrol prices have
become soo outrageious, that people are not going to their jobs, that the cost of commuting is more
than the income. I don't remember the name of the nation state where this his happening today!, Guinea?
but geezez, that is the extreme bankruptcy condition and how it will happen, IMO.