U.S. IN TECHNICAL DEFAULT

financial sense online ^ | January 27, 2006 | Chris Martenson

[SteveMcKing]

Leaving aside the issue of a technical default, one wonders why questions aren’t being asked about the rate of debt accumulation and whether it’s sustainable.

Use an extreme example... what would happen if the debt were 100 times more than it is? Who, exactly, is the "Repo man" that would start hauling government property away for auction?

[Dog Gone]

As the world economy and the US economy grows, so will the deficit. In fact there would be some bad ramifications to paying the deficit off entirely. That's a different topic.

So yes, we'll get these scary stories about the US going bankrupt unless Congress passes a law every year to make it worse, but it's really just a symptom of growing wealth in this country and nothing really new.

[ARealMothersSonForever]

We are Doomed!

[SkyDancer]

Why can't they just use one of their credit cards ... ???

[diverteach]

Every bit of minted and printed money is to be backed by gold and it looks like the govt. either needs to get serious about budget cuts, start $hitting gold bricks, or borrow one of Willy Wonkas golden egg laying geese.

[woofie]

Ok but think of all the air miles we got

[coloradan]

I dunno ... is a hyperinflationary spiral really that bad?

[zeugma]

<sarcasm>I sure am glad that the republicans are in charge, or we might have to worry about out of control spending. </sarcasm>

[festus]

This aint what is referred to as being in default. Regardless of what the headline writer thinks.

[Mr. Jeeves]

Or, more accurately, we hope that our kids will, and not stiff us for the bill. But if they did, who could blame them?

Well, of course they are going to stiff the Baby Boomers - the moment it becomes more important for politicians to pander to the younger generations. There's no way to keep the promises that have been made by politicians who will be dead long before the bill comes due. I hope people at the tail end of the Boomer generation aren't counting on Social Security, Medicare, or retirement before age 85. ;)

[xjcsa]

Every bit of minted and printed money is to be backed by gold and it looks like the govt. either needs to get serious about budget cuts, start $hitting gold bricks, or borrow one of Willy Wonkas golden egg laying geese.

Did we go back to the gold standard and I missed it?

[mkjessup]

No problem. We announce that the U.S. dollar will be backed by uranium and plutonium, and since we have one helluva pile of that stuff, our financial worries as a nation are completely over.

[postaldave]

or our we on the silver standard somebody skipped high school history.

[TheBrotherhood]

Keep those fiat money printing presses running. That ought to cover all debts.

[MarkL]

Pfft! Hey, the government doesn't have to follow the laws! The government IS the law! And the politicians are above the law!

Laws are for losers... And subjects... And slaves...

Mark

[MarkL]

This guy is just trying to sell gold futures.

Well, I'm investing heavily in canned goods and shotgun shells!

Mark

[RGSpincich]

Foreclosure!