What's going to happen next?

Question

If America becomes officially bankrupt how will that effect us and what will happen to us?
http://www.khouse.org/articles/2007/735

Answer 1

An economic collapse will lead probably lead to hyper-inflation, meaning that the dollar would essentially be worthless (read the history of Weimar Germany). This would bring about several things:

- massive unemployment
- massive foreclosure rates
- massive increase in Chapter 7 and 13 bankruptcies
- massive increase in violent crime
- shortages and rationing of fuel, food and medicines

The government would then either:

1) Collapse - not likely, whatever else happens, it still controls the military; so we'll be stuck with the same idiots in control.
2) Step in with wage and price controls, asset forfeiture and laws forbidding personal possession of gold (and possibly even silver, depending on how bad things got), and socialist schemes like F.D.R.'s New Deal policies, which will prolong and exacerbate the problem, just as it did in the 30s.

If we have another great depression, I'm afraid it will last longer and be worse than the first one. Americans don't have the same strong basis of faith, family, commitment and work ethic that Americans in the 1930s had; the inner cities, in particular, will suffer and, I believe, turn violent. And as far as our government has slipped from its constitutional roots, I think another such event would be the end of the Republic in all but name.

I hope none of this comes to pass, but the forecast is not good. We are more than $8 trillion in debt, and it's my understanding that the total debt obligation of the U.S., including entitlement spending) is close to $50 trillion. We can't keep doing business that way. Adding to the problem is the fact that we've alienated much of the good will that we once had with the nations of the world, meaning that that they won't be as likely to step in and save our bacon as they did when we fell into problems in the late 70s. In fact, they are already starting to move away from the dollar; slowly, but they're doing it.

My recommendations (coming as one who has studied history and read what the experts are saying - and these are good for other types of crises, as well, like hurricanes, etc):

- keep a month's supply of food and water on hand
- buy a basic disaster survival kit (they come in all types and some are very affordable and practical)
- if you have the storage space, keep gasoline on hand (enough for at least one tank fill-up on the road, if the gas stations are closed)
- make sure you have ample supplies of any necessary medicines (such as insulin, heart pills, etc).
- buy a water filtration system (they start off very affordable - $20.00 and up)
- have some of your savings in gold and silver (bullion, not jewelry), and divide it between electronic currency (like Gold Money) and physical bullion
- take anything valuable out of safety deposit boxes (that's one of the first things that will be seized)
- store some camping supplies, batteries, candles and such.
- look into alternative power (such as solar and wind, it's getting more affordable)
- buy a gun and learn how to use it safely (you won't be able to count on police protection, especially if phone service is erratic and other infrastructure breaks down)
- if you can, think about keeping a small garden
- have an idea of some place you could go in a crisis, or people you could meet up with
- buy a couple of books on how to get along without power and other city services, as well as medical help

*Note...a few weirdos out there have given self-sufficiency and disaster preparedness a bad name. Don't put yourself and/or your family at risk because you're afraid of being considered a little odd. Remember what happened with Hurricane Katrina and how a modern city suddenly turned medieval overnight. Preparedness and self-sufficiency just make sense. We all saw how unreliable (and even incompetent) the government was during the Katrina mess.

Answer 2

With every day pass, our country is getting into more and more trouble. The inflation, unemployment and falling value of dollar are the main concern for our Government but authorities are just sleeping, they don’t want to face the fact. Media is also involve in it, they are force to stop showing the real economic situation to the people. I start getting more concern about my future as well as my family after watching the response of our Government for the people that affected by hurricane Katrina.

According to recent studies made by World Bank, the coming crisis will be far worse than initially predicted. So if you're already preparing for the crisis (or haven't started yet) make sure you watch this video at http://www.familysurvival.tv and discover the 4 BIG issues you'll have to deal with when the crisis hits, and how to solve them fast (before the disaster strikes your town!) without spending $1,000s on overrated items and useless survival books.

Answer 3

The current account which you have quoted here is balanced by the capital account. The US runs a capital account surplus (ie we have more capital come into the US than leave it). This means foreign investors are still investing here.
The current account deficit is nothing new. It has been happening for decades. It should not be confused with the federal budget (which is also in deficit). The budget deficit is the government's one year balance sheet. The current account is the whole country's.
Because the US economy is not burdened by the rigidity of the gold standard (despite some loonies wanting to reintroduce it) our currency and our interest rates will vary to ensure than capital flows are there to match current outlays - so while the situation is not a healthy one - we are not going broke.

Answer 4

Printing more money will lead to an even worse inflation. In post WWI Germany, the same happened and prices increased from 1 to a million, and even billion.

The going might get bad, but nothing short of a global catastrophe could cause another great depresion. The economy is too big and we're set up in such a way that it's near impossible.

Answer 5

Ticket grasp stuck them for traveling with out price ticket. Since SRK and his father have been with out their luggage and cash they might no longer pay the pleasant and have been bundled out to prison alongwith deficient Kajol. Later Arrish Puri modified his brain once more and didn't aid them out. Poor Raj and Simran needed to marry and honeymoon in prison .

Answer 6

Clinton is proposing 1 billion to bail out mortgage companies and John Edwards is blaming the Clinton administration for the subprime mortgage lending mess.

Answer 7

Don't worry,we will just take it all back from the other countries commoditiesWe will never let them have the Gold.We will always Rule as long as we still have Nukes

Answer 8

If Hillary gets it for President? you will have to hang on to your pocket book, and prepare to ride out the storm, all these subsidies for Socialized healthcare, illegal immigrants, and the unemployed; will demand a toll on the working class's taxes!

Answer 9

Government services will cease, roads and bridges won't be repaired, welfare will end...

How good are your survival skills?

My grandfather rode the rails and learned that stuffing his clothes full of dried weeds would insulate him and keep him from freezing to death.

Answer 10

Another depression. Get ready for it, because the signals are all there.

Remember, Bush is a talented loser, probably the GREATEST failure of the last 2000 years. He has an innate ability to failure, but is also blessed with a stupidity that is set to take us all off a cliff.