US Government Bankruptcy (David Walker)

60 Minutes ^ | Unknown | 60 Minutes

[TSchmereL]

Watch this video and watch related videos. Prepare to become angry at Republicans and Democrats.

[TSchmereL]

What was George W. Bush thinking when he created his prescription-drug benefit for seniors?

[RightWhale]

A country cannot be bankrupt in financial terms.

[marvlus]

Later review.

[Vet_6780]

There is a bill in the house that appropriates $300 billion for a taxpayer bailout of all negative amortized residencial mortgages.

If the market gets any hint that this bill is under serious consideration, the bond market will collapse 30% within ten minutes.

[TSchmereL]

Apparently, David M. Walker, Comptroller General of the United States, disagrees.

[RightWhale]

If that is what he meant, which is doubtful, then he is wrong.

[Jack Black]

Why can’t a government go bankrupt? Cities and States can, right. I belive there is even a special section in the code for bankruptcy of government entities. Do you mean the Federal Government can’t — ok, because they control the money supply (indirectly I guess) it seems they can always print money. Is Hyperinflation the equivelent of Government bankruptcy? Ala Zimbabwe or Weirmar Germany? If so, are we headed there?

[RightWhale]

Hyperinflation is possible.

[<1/1,000,000th%]

“Not worth a continental?”

[Boblo]

Providing a “prescription drug plan” to fend of off the democrats plan and get reelected.

So in effect, the RATS got their way.

[RightWhale]

Cities and States can

Does somebody come to repossess their Capitol Building and picnic park?

[mnehring]

When the government spends into a debt level they money is not borrowed from any mythical Social Security or Medicare trust as the politicians would like you to think. The government funds its debt through the issuance of Treasury Bonds. These bonds are bought by business and individual investors as a way to secure their money. Most people don't realize that much of the money they have in the bank is actually protected by Treasury investments by the bank. The issuance of Treasury Bonds means that the government has a direct investment in the US and world economy. One of the worst things a government can do for the economy is actually run a surplus of funds. A government surplus actually results in money not being used in the economy. It is actually a myth that the government needs a ‘rainy day fund’ in the event of a disaster. Most disasters, including 9-11 have caused more issues of T-bonds, which is more investment in the economy.

Does this mean that a bigger debt is better? No, the national debt is a key component of our economy but the most ideal situation would be a state of equilibrium with as little outside influence as possible. The reality of the national economy has, however, created a cycle where much of our investments and capital as well as the world's economy is hedged by the issuance of treasury bonds.

[<1/1,000,000th%]

[FReepaholic]

I don’t have to watch a video to be angry with Democrats and Republicans. (but I’ll watch it anyway)

[microgood]

Fiscally speaking, George Bush is the most irresponsible president in our nation's history. He has run up the deficit 4 trillion dollars in his presidency, equal to that of Clinton, Reagan and Bush I combined.

That will be his legacy,

[RachelFaith]

Inevitably so. The will do do otherwise, is wholly lacking.

[LurkingSince'98]

A country cannot be bankrupt in financial terms.

tell that to the Weimar Republic and Zimbabwe!

They may not call it bankrupt but when no other country will take your paper - well you call it whatever you want.

Lurking’

[underground]

That’s great news! Marx must have been right all along. Now, since the government can’t go bankrupt, why isn’t it providing all my wants & needs? /s

[underground]

Yeah, but 4 trillion dollars today really isn’t worth what it used to be :) Greenspan & Bernanke’s role in these record debts and inflation have to be considered.