America Is Bankrupt

[greenfs]

The slide in the US Dollar is now helping the United States to redress their current account deficit.

Many companies are seeing the advantages of exporting as they suffer higher material costs at home. Higher costs of imports are starting to benefit the US, and it looks increasingly likely that the DOW 30 will head on up.

It wont be long before the US interest rates will be higher than in Aussie as their current account deficit is clearly way over the top. Whilst sad to say, US domination of GDP is diminishing daily having reduced from 33% to 23% over the past decade (Source: Challenger Group) and I cannot see anything reversing the trend.

I just hope big time that we can disassociate our economy from US dominance so that we don't get dragged down the gurgler with them.

 

[websman]

America is not as bad off as this nut claims!

I'm an average American and I'm living better than ever.

 

[prawn_86]

must consider the original post was made a couple years ago now. not that it makes too much difference.

 

[Julia]

America is not as bad off as this nut claims!

I'm an average American and I'm living better than ever.

Pleased to hear it, Websman.
Who is looking likely to be the next President?

 

[websman]

Pleased to hear it, Websman.
Who is looking likely to be the next President?

Sorry...Late reply. I predict that the next president will be Barack Obama.

 

[numbercruncher]

America is not as bad off as this nut claims!

I'm an average American and I'm living better than ever.

So seen your living better than ever it means every other American must be as well?


America has more debt and financial liabilties than she can ever expect to conquer short of massive inflaton, if this statement is wrong can someone prove it with facts and figures.

ie/ How is US going to repay foreign Debt and meet Social security/Medical etc going forward, at the end of WW2 US had 20 workers for each retiree over the next couple of decades that reduces to something like 2 workers for each retiree. And thats just the beginnng of troubles, consumers are maxed out on Debt hence the recent debacles in the worlds financial markets.

 

[ithatheekret]

We've got nothing to cheer about though NC.

2 Australian workers support one unemployed Australian and we have done since the 90's . I hope Kev can figure it out , but I don't like his odds .

 

[noirua]

Sorry...Late reply. I predict that the next president will be Barack Obama.

After the last Clinton/Obama/Edwards broadcast it would indeed be funny, IMHO, if the American people turned on the front runners and put Edwards back in the running after Super-Tuesday.:topic

The assets of the United States of America both at home and abroad are so enormous there is really no problem. Anyway, a Country can't go bankrupt, it just stops paying its debt and carries on regardless.

 

[KIWIKARLOS]

The difference is we have super in oz and alot of retirees have enough money to live on or at least take a great amount of the possible financial burden off the rest of us. Without the super scheme we would be screwed.

There is alot of ways the US can close its current account deficit eg.
1. Improved efficiency: by improving efficiency they will reduce demand for imported oil and become more competitive when exporting.

2. Stop the ways in Iraq and Afghanistan: I hate to think how much these two wars eat up but I imagine its well past the hundreds of billions in not only direct investment but also in the loss of growth that money could make if invested elsewhere.

3. encourage or force the chinese to increase the value of the yuan

etc

Also we have to remember the US now has control of the biggest and cheapest oil reserve in the world do you think they will let this cheap oil flow to China and India or make sure that US companies retain control and retain the profits.

There is absolutly no reason why the destruction of the US economy that has been going on for the last decade or so can't be turned around in the next decade or so.

The problem is it requires intellegent and often painful decisions to be made that have reprocussions beyond that of the next presidential election.

 

[battiwallah]

Most of the posts have been about moral bankruptcy, but what about the economic bankruptcy of America.

Try this:http://research.stlouisfed.org/publications/review/06/07/Kotlikoff.pdf

A paper by Laurence Kotlifkoff of the Federal Reserve Bank in the USA who reckons America is really economically bankrupt, and he ought to know better than most!

Read it and weep:-(

 

[tech/a]

When I saw this threads headline I immediately thought.

Yeh and so are a lot of traders after yesterday!
My humor I'm afraid.

 

[numbercruncher]

And the "conclusion" from that link (Ive read it before today)

CONCLUSION
There are 77 million baby boomers now ranging
from age 41 to age 59. All are hoping to collect
tens of thousands of dollars in pension and healthcare
benefits from the next generation. These
claimants aren’t going away. In three years, the
oldest boomers will be eligible for early Social
Security benefits. In six years, the boomer vanguard
will start collecting Medicare. Our nation
has done nothing to prepare for this onslaught of
obligation. Instead, it has continued to focus on
a completely meaningless fiscal metric—“the”
federal deficit—censored and studiously ignored
long-term fiscal analyses that are scientifically
coherent, and dramatically expanded the benefit
levels being explicitly or implicitly promised to
the baby boomers.
Countries can and do go bankrupt. The United
States, with its $65.9 trillion fiscal gap, seems
clearly headed down that path. The country needs
to stop shooting itself in the foot. It needs to adopt
generational accounting as its standard method
of budgeting and fiscal analysis, and it needs to
adopt fundamental tax, Social Security, and
healthcare reforms that will redeem our children’s
future.

 

[websman]

So seen your living better than ever it means every other American must be as well?


America has more debt and financial liabilties than she can ever expect to conquer short of massive inflaton, if this statement is wrong can someone prove it with facts and figures.

ie/ How is US going to repay foreign Debt and meet Social security/Medical etc going forward, at the end of WW2 US had 20 workers for each retiree over the next couple of decades that reduces to something like 2 workers for each retiree. And thats just the beginnng of troubles, consumers are maxed out on Debt hence the recent debacles in the worlds financial markets.

Screw the rest of America... I'm only out for myself. BWAAAHAHAHA!!!

 

[websman]

After the last Clinton/Obama/Edwards broadcast it would indeed be funny, IMHO, if the American people turned on the front runners and put Edwards back in the running after Super-Tuesday.:topic

The assets of the United States of America both at home and abroad are so enormous there is really no problem. Anyway, a Country can't go bankrupt, it just stops paying its debt and carries on regardless.

It would be funny....but not likely.

 

[websman]

Face it guys.... America will always be #1.

 

[explod]

It would be funny....but not likely.

The debt is to those holding US$. To ellieviate the debt the dollar will be encouraged to continue its fall. GWB said the other day "we have a strong economy and a strong dollar" The charts say otherwise and the Fed contiues to dilute with the printing presses. What is the value of the rescue package? did I hear in excess of 100 billion ?? (just off the top)

 

[GreatPig]

Face it guys.... America will always be #1.

I'm sure others have thought similar in the past, like the Greeks, the Egyptians, the Romans, the Byzantians (or whatever they were called), and more recently the Brits.

Okay, the Brits haven't waned as much as the others yet, but their empire has certainly contracted.

Every dog has its day.

Cheers,
GP

 

[websman]

I'm sure others have thought similar in the past, like the Greeks, the Egyptians, the Romans, the Byzantians (or whatever they were called), and more recently the Brits.

Okay, the Brits haven't waned as much as the others yet, but their empire has certainly contracted.

Every dog has its day.

Cheers,
GP

Australia could end up ruling the world one day...That would be cool.

 

[GreatPig]

If there's anything left worth ruling...

GP

 

[Aussiejeff]

Face it guys.... America will always be #1.

I'm not so sure being #1 in the Race to Bankruptcy is a title worth claiming... so I guess the US desire to be #1 is all-powerful at all-cost, eh?

BTW, US markets tanked overnight (as many here probably expected) - down 170 pts or so on "further credit concerns" and the realisation that the Great Saviour GWB's rubber cheques might not actually get handed out for months yet...

If US stocks tank a further 200 pts or more on Monday (which I predict they will FWIW), our Happy little Vegemite market (slumbering fitfully through a long weekend after joyful rave partying on Thu-Fri) might just wake up on Tuesday to a whopping, migraine-induced hangover.... ouch. I can sense Tuesday morning's p-a-a-i-i-i-n-n-n-n already.

Hark! Do I hear a Bear growling out the back paddock??? Looks like that weak old Bull is getting ready to bolt fer the hills agin...

*sigh*



AJ