With the responses to my previous questions it seems to me that all politicans are putting this country on the fast track of going broke and possiblity head us into a depression or becoming a third world country. What are your thoughts and what would be the solution if any?
2006-07-05 17:21:11 · 6 answers · asked by Anonymous in Politics & Government ➔ Government
Interestingly enough, the possibility of such a thing happening is very real.
With a debt load forcasted in the Trillions, we are leaving a very poor legacy of debt for our future generations.
The interesting part to this scenario, is where does the Government get the money it needs to run the country and what are the terms of payback? The world bank is a consortium of lending agencies that lend money to countries to do with as they need to. How far does this organization go, into lending money before they say enough is enough?
The current middle east crisis is costing the United States a serious amount of money on a daily basis, but not nearly as much as the interest the country needs to pay for the interest on what it owes.
Mismanagement of tax dollars falls flatly on the shoulders of Government, and not necessarily the current one. The Democrats and Republicans are both at fault for the continuing increases in the federal debt.This is not something that has happened over night or over the past six years. This has been going on since the beginning, only now it's much worse.
Who bites the bullet on this one is any ones guess. The United States will continue to operate very much the same as it has, it's just that if it continues to do so at the rate it is, there will be more foreign ownership of businesses and properties. Then, we won't be the country we set out to be.
2006-07-05 17:47:30 · answer #1 · answered by chief_manyfeathers 2 · 1⤊ 0⤋
I think you're forgetting something. There is no standard against which a dollar is indexed.
The reason we have had such a hard time competing with Chinese businesses is because China fixes their currency artificially inflating it to keep the relationship between their and our currency steady. Despite the devaluing of the Dollar noone is looking to by American goods due to the decrease of the dollar because the Chinese Currency is still the same ratio to ours causing our cost with exchange to be the same rather than more expensive for us to buy goods from China.
We cannot go bankrupt, because the value of those bonds is relative to the value of our currency. If we tomorrow all the bonds were called in the treasury deparments would print US dollars to the tune of trillions devaluing all the money allready in the US. The US would not go Bankrupt though some investment companies might. The US would be back at zero debt with a currency worth next to nothing similar to Germany just as Hitler was taking power. At that point the government could stop inflation by issuing a new currency and set whatever rules for exchange it wanted. It could have a different exchange rate for external powers from internal.
So yes it would be a bad thing if we don't lower spending. No the US could never go Bankrupt. the chinese could buy companies and land in our country, but it would still be under US law and could not be seized and anexed.
Rocco
ps we could always stop spending money on other countries and kick the UN out of New York unless they paid higher rent. If we stopped spending on other countries and stopped participating in UN military actions. If we brought the troups home from Bosnia and Kosovo and France and Germany. We could if that money was not spent pay down the debt in years. Think of all the money we spend on releif and aids research in 3rd world countries.
2006-07-06 01:00:25 · answer #2 · answered by Anonymous · 0⤊ 0⤋
The dollar has dropped in value by 12% since 2002. If China wanted to invade a country all they would have to do is call up the notes we owe them and bye bye economy. We need to protect our economy and slow down globalization and bring back tariffs.
2006-07-06 00:28:54 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Clinton had a surplus because of .com came along. The problem both sides of the aisle felt that meant they could spend more. At in 911 to the governments wish to buy votes one gets bankruptcy.
2006-07-06 00:31:36 · answer #4 · answered by viablerenewables 7 · 0⤊ 0⤋
No! I don't believe that it will ever happen. We have conquered the Iraqi Oil now. Eventually, the new Iraqi puppet government will pay for everything for many years to come. Don't worry!
2006-07-06 01:02:30 · answer #5 · answered by Mr. J 4 · 0⤊ 0⤋
Get rid of the republicans, Clinton had a surplus, then Bush stepped in and look at us now.
2006-07-06 00:24:37 · answer #6 · answered by dribcam 2 · 0⤊ 0⤋