Let's Put to Bed the 'America Is Bankrupt' Myth

[expat_panama]

To read economic and political commentary with any kind of frequency is to be bombarded daily - and hourly for that matter - with breathy articles about a United States groaning under deficits that surely signal bankruptcy, Social Security checks that eventually won't clear, and of course a looming financial crisis. A recent New York Times column by noted deficit scold David Stockman naturally referenced America's "desperate" financial situation.

Much of this commentary is well written, it's certainly popular, but it's also total nonsense.

More at RealClearMarkets - Let's Put to Bed the 'America Is Bankrupt' Myth

Sorry, couldn't resist starting up a flamewar.

Maybe after this I can start threads on how average US real incomes are up, inflation doesn't exist, but hey let's stick to one hornets nest at a time...

 

[rightwinger]

The US is the weathiest country on earth

 

[MaggieMae]

To read economic and political commentary with any kind of frequency is to be bombarded daily - and hourly for that matter - with breathy articles about a United States groaning under deficits that surely signal bankruptcy, Social Security checks that eventually won't clear, and of course a looming financial crisis. A recent New York Times column by noted deficit scold David Stockman naturally referenced America's "desperate" financial situation.

Much of this commentary is well written, it's certainly popular, but it's also total nonsense.

More at RealClearMarkets - Let's Put to Bed the 'America Is Bankrupt' Myth

Sorry, couldn't resist starting up a flamewar.

Maybe after this I can start threads on how average US real incomes are up, inflation doesn't exist, but hey let's stick to one hornets nest at a time...

E.J. Dionne wrote a similar column recently.

What if we’re not broke? - The Washington Post

The phrase is designed to create a sense of crisis that justifies rapid and radical actions before citizens have a chance to debate the consequences.

Just one problem: We’re not broke. Yes, nearly all levels of government face fiscal problems because of the economic downturn. But there is no crisis. There are many different paths open to fixing public budgets. And we will come up with wiser and more sustainable solutions if we approach fiscal problems calmly, realizing that we’re still a very rich country and that the wealthiest among us are doing exceptionally well.

 

[Truthmatters]

There are people who want this country leveled with the third world so they can get more cheap labor.


The right defends these very people day in and day out.

 

[Leweman]

Nope... but way to exagerate things so no one takes you seriously.

 

[Avatar4321]

So we are spending trillions of dollars we don't have. But we aren't bankrupt? Everything's fine. Ignore the fact that our credit rating is on shaky grounds. There is no problem.

Denial is dangerous when dealing with serious problems our nation has.

 

[Truthmatters]

All we need to do is go back to the tax levels that gave us the great times during the mid century

 

[Truthmatters]

Historical Top Tax Rate

 

[Avorysuds]

Nice to see TM agrees the OP is full of shit =D.

 

[Truthmatters]

So you agree we should go back to 90% tax rate on the 1% ?


Our corps did fine and America was on top in education and many other areas.

 

[expat_panama]

The US is the weathiest country on earth

Bingo!

The US is a twentieth of the world's population with half the world's wealth and a about a third the world's economy. Beats the hell out of me as to why this is so flippin' hard for people to accept.

 

[rightwinger]

The US is the weathiest country on earth

Bingo!

The US is a twentieth of the world's population with half the world's wealth and a about a third the world's economy. Beats the hell out of me as to why this is so flippin' hard for people to accept.

We also own the most powerful military in the history of mankind and untold natural resources. One third of the land in the US is owned by the US Govt

 

[Annie]

It's a Kubuki Dance with China and US:

US sovereign credit default risk low - GlobalTimes

 

[Annie]

It's a Kubuki Dance with China and US:

US sovereign credit default risk low - GlobalTimes

 

[Wiseacre]

(Sigh)


So many dumbasses, so little time.

Maybe we should start with a definition of bankruptcy. It's when you owe so much you can't pay your debts. Of course, liberals don't really care about paying off debt, except when they want to raiase the debt ceiling. So we're over 14 trillion, heading for 20 trillion before the decade is out, and BTW we've got the unfunded liabilities for SS, Medicare, and Medicaid. Today's interest on the debt is about 200 billion/yr when the interest rate is below 3%. What do you think it'll be when interest rates climb and the debt is well over 20 trillion?

But not to worry, we can always print more money. And besides, the kids can pay for it.

 

[Truthmatters]

Then lets go back to the tax rates that gave us an awsome lifestyle

 

[expat_panama]

...we will come up with wiser and more sustainable solutions if we approach fiscal problems calmly, realizing that we’re still a very rich country and that the wealthiest among us are doing exceptionally well.

[/QUOTE]

Makes sense, but America's governance is so vitally and passionately important that 'calmly' maybe isn't quite the right word here...

 

[rightwinger]

(Sigh)


So many dumbasses, so little time.

Maybe we should start with a definition of bankruptcy. It's when you owe so much you can't pay your debts. Of course, liberals don't really care about paying off debt, except when they want to raiase the debt ceiling. So we're over 14 trillion, heading for 20 trillion before the decade is out, and BTW we've got the unfunded liabilities for SS, Medicare, and Medicaid. Today's interest on the debt is about 200 billion/yr when the interest rate is below 3%. What do you think it'll be when interest rates climb and the debt is well over 20 trillion?

But not to worry, we can always print more money. And besides, the kids can pay for it.

You are half right..

You do a nice job of listing our debts...even managed to blame the Liberals for all of them

When looking at bankruptcy you need to look at debt and then compare them to assets. What are the assetts of the US? We have a GDP that is three times the next largest economy, we have a massive military, we have millions of acres of land covering one third of the country, we have a massive industrial base.....

We are no where close to bankrupt. The only reason we have so much debt is because Americans are lazy and don't want to make sacrifices. Republicans suck up to them by cutting taxes arbitrarily, Dems suck up by offering entitlements. Until someone shows some balls and raises taxes and cuts entitlements we will continue to wrack up debt.

But bankruptcy is not an issue

 

[Truthmatters]

The mid century was great, pleanty of jobs and the coprs were doing fine.

Why not go back to those tax rates?

 

[expat_panama]

...Everything's fine. Ignore the fact that our credit rating is on shaky grounds. There is no problem...

That's crazy and I'd thought of asking where it came from, but my guess is you just made it up to have something easy to refute.

In the mean time, let's look at the word "bankrupt." Usually the word means "adjudged insolvent by a court with property being transferred to a trustee and administered for the benefit of creditors " OK, everyone likes to bellyache about the state of the Union, but is anyone seriously saying this is what's happening?