What happens when the USA goes bankrupt?

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Hi jms:

Such a timely question. Thanks. I notice that u use "when" not "if." Unfortunately, yr choice of words is correct.

Here's a little factoid to consider before we dig in to this question: do u know the cost of ONE B-2 stealth bomber? $2 Billion. For...one. IS any wonder we're headed into Chapter 11? No.

Okay, what happens? Well, in a sense you're right: we will have to give the W.Coast. to China. But the deal will be much more comprehensive than that.

When we go into Chapter 11, in other words when the Chinese say, "USA, we've got all these IOU's from u, now we want our cash." We couldn't fork over the cash. No way.

So what happens?

"Well, China, we can't do that. But we have some nice "units," which we call states, which you'll love. Vermont, South Carolina, Utah, Montana, Nebraska, New-- -what? We are NOT giving u cheap states. Look, we'll add West Virginia and Mississippi...etc...etc".

So u see, jms, there would be some 'horse trading'

Actually, to be serious for a moment, it is definitely NOT in China's interest to us go down the tubes. They own tons of our debt and they certainly don't want that devalued. They want us able to buy things from them.

It's a terrible mess and that can only mean one thing: higher taxes.

Let's pray it won't go that way!

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Cam

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The Federal govt was once already greater than $10 trillion in debt in September 2008, and is currently at $11.2 trillion. President Obama's FY 2009 funds deficit will add $1.7 trillion, and a further $1.17 trillion in FY 2010. That means the debt would be as excessive as $14 trillion by using 2010. Nonetheless, the U.S. Has many options to avoid bankruptcy. The U.S. Govt is growing the debt stages to spur the economic climate out of the worst recession given that 1982. It's financed by means of sale of U.S. Treasury bonds, which can be still rather trustworthy investments for foreign shoppers reminiscent of China and the Japan. Nevertheless, price range deficits are nonetheless projected at $500 billion per 12 months. This is to pay for mandatory programs similar to Social security and Medicare. If want more accurate details please click on the web site beneath!

Lose land probably. Either way we are losing money by shipping in tons of shet made in china. Doubt we will fully lose the USA to china we would more then likely continue to go in depth with ongoing tax raises until the homeless community is at an all time high as if it isn't already today

Countries don't so much go bankrupt as much as default on their payment Joe . God man are you yet so old that your conscience mind doesn't grasp economics. China needs the US . They are the best customer they will ever have The is no other buyer in the world like the United States. Try to get away from that 1940's way of thinking man.

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RE :What happens when the USA goes bankrupt?

Do we have to give the west coast to China?

5 following 14 answers

Marshall Law!

Riots and interruptions in many, many services we now enjoy (including food).

Glad I live in the country and am VERY self sufficient.

The riots begin.

The bankers are destroying the world.

I'll stay permanently in Britain.