Ed from OC

Bankrupt USA

8 posts in this topic

Here is an article claiming the US is going bankrupt due to government spending. Possible solutions: double income and corporate taxes; slash entitlement spending by 2/3; or erode the debt by devaluing the dollar.

Personally, my money is on the last being the more likely option, as it has the least political objections.

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Personally, my money is on the last being the more likely option, as it has the least political objections.

It's already happening. Have you seen the price of gold lately?

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What is the market value of current government assets that wouldn't be kept under a laissez-faire government? An example is "national forest land."

If all these assets were steadily sold off, how much could they bring in?

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What is the market value of current government assets that wouldn't be kept under a laissez-faire government? An example is "national forest land."

If all these assets were steadily sold off, how much could they bring in?

Now there is something Warren Buffett could do with his money! :P

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If all these assets were steadily sold off, how much could they bring in?

I don't have the exact reference unfortunately, but I'm pretty sure that Richard Salsman did just such a calculation (and the value of those resources is staggering.) Perhaps you should post the question to him in the expert area.

There would still be a basic problem though. Without a reduction in spending, if the current national debt were erased, it would simply start to mount up again in short order.

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Technically, any government is bankrupt that borrows funds in excess of pledged voluntary donations: it has a debt without a rightful means of repaying it. So the U.S. Federal Government is already bankrupt right now, and has been so for decades at least.

But not to worry, such technicalities as individual rights have never kept the government from meeting its obligations towards its creditors.

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Here is a follow-up article. Just look at how the problem gets worse when Medicare and Social Security are included:

"If Social Security and Medicare were included — as the board that sets accounting rules is considering — the federal deficit would have been $3.5 trillion."

The article focuses on government accounting methods that hide the true cost of runaway spending.

"Cash accounting lets income and expenses land in different reporting periods. Accrual accounting links them. Under cash accounting, a $25,000 cash advance on a credit card to pay for a vacation makes the books look great. You are $25,000 richer! Repaying the credit card debt? No worries today. That will show up in the future."

Scary stuff!

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The article focuses on government accounting methods that hide the true cost of runaway spending.

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Scary stuff!

Sounds like Enron was a piker.

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