What Happens When America Goes Bankrupt?
Hat tip Tyler Durden, Zerohedge.com
Submitted by Simon Black via Sovereign Man blog,
Last week in the Land of the Free, I heard a radio campaign ad for a local political candidate while in Texas.
In the ad, he was talking about the debt and excessive government spending. And then he said something along the lines of, “We need to get this under control before America goes bankrupt.”
‘Buddy,’ I remember thinking, ‘America isn’t going bankrupt. It already IS bankrupt.’
Just so that we don’t mince words, my dictionary defines ‘bankrupt’ as “any insolvent debtor,” i.e. a debtor whose liabilities exceeds assets.
That’s the US government, by its own admission.
As we’ve discussed before, the US Government Accountability Office (GAO) publishes financial statements each year in which they list all official government assets and liabilities.
The liabilities far exceed the assets. Big time. And the hole is getting deeper each year.
At this point the government’s net worth is roughly NEGATIVE $17 trillion, about 110% of GDP. That’s textbook insolvency.
The only reason the US government is still able to service its debts is because they are borrowing money just to pay interest… and because the Federal Reserve keeps printing money to buy up US debt.
Read the rest of the story here:
https://www.zerohedge.com/news/2014-05-14/what-happens-when-america-goes-bankrupt
This is what happens when public sector workers get a vastly better deal than private sector workers and you tax middle class income earners to death to pay for it…. your country goes in to secular decline because you stop focusing on being competitive and shift completely to spending your revenues on wages and entitlements instead of tax breaks for new investment and R&D. At least NJ is ahead of the curve in leading us down.