Is the United States Bankrupt?

[Bottomfeeder 244]

Is the United States bankrupt? Many would scoff at this notion. Others would argue that financial implosion is just around the corner. This paper explores these views from both partial and general equilibrium perspectives. It concludes that countries can go broke, that the United States is going broke, that remaining open to foreign investment can help stave off bankruptcy, but that radical reform of U.S. fiscal institutions is essential to secure the nation’s economic future. The paper offers three policies to eliminate the nation’s enormous fiscal gap and avert bankruptcy: a retail sales tax, personalized Social Security, and a globally budgeted universal healthcare system.

Federal Reserve Bank of St. Louis Review, July/August 2006, 88(4), pp. 235-49.

http://research.stlouisfed.org/publication...7/Kotlikoff.pdf

[tigerfan1234 0]

Rising gas price, astronomical health care costs, jobs going elsewhere, increasing natural disasters and the housing market becoming unaffordable for many. I am not smart enough to figure out the economic situation in America, but I can say all these factors and many more that I didn't mention may eventually contribute to our downfall.

[Ranger12 46]

I don't know about the United States, but I know I am.

[Bottomfeeder 244]

I don't know about the United States, but I know I am.

248928[/snapback]

What?

[AURaptor 1,125]

Rising gas price, astronomical health care costs, jobs going elsewhere, increasing natural disasters and the housing market becoming unaffordable for many.  I am not smart enough to figure out the economic situation in America, but I can say all these factors and many more that I didn't mention may eventually contribute to our downfall.

248894[/snapback]

Yes, gas prices are rising, but we pay far less in the US than most industrialized nations. Jobs goin elsewhere ? Hardly. That situation has been blown up beyond the absurd. Increasing natural disasters ? Not that we could do anything about it if we wanted, they aren't 'increasing' . Maybe the tolls which burden us after each 'event' cost more,but there aren't increasing disasters, in frequency or in strength.

I won't comment on how smart you are, but seems you suffer from chicken little syndrome.

[Bottomfeeder 244]

Bulls punt. China's currency manipulation?

Bulls bet on gold to top $1,000

By Ambrose Evans-Pritchard

(Filed: 14/07/2006)

A sudden surge in demand for gold options cashable at over $1,000 an ounce is the clearest sign to date that hedge funds and savvy traders are betting on a big rise in bullion prices.

John Reade, the bank's precious metals strategist, said: "Clearly some options traders are positioning themselves for very large moves higher."

The prices are far above gold's all-time high of $850 at the height of the oil and inflation crisis in 1980. Gold closed yesterday at $653.

UBS said investors had begun to show keen interest in "call" options to expire in December with strike prices of $1,000 an ounce and above.

The bank said buyers had even emerged for options dated late 2007 with a strike price of $2,500.

http://www.telegraph.co.uk/money/main.jhtm...3Cbr%3Eity.html

[otterinbham 0]

Oh, another shrill nightmare scenario.

Now, given that we have another 30 years or so before Economic Doomsday, I'd be more inclined to worry about true dangers to our well-being, such as Kim Il Jung lobbing nukes at the west coast, an asteroid striking the planet, or Brad Pitt and Angelie Jolie become co-anchors for NBC News (Hey, if Katie Couric can do it....).

The key issue here is the government's attitude towards entitlements. Social Security, Medicare/Medicaid, and the new Free Prescription Medication for the Elderly (Courtesy of our jackass President. When the hell did he become a Liberal when it came to government policy?). If Americans face the choice between cutting entitlements or ratcheting up taxes, I think they'll vote against taxes this time around. Everybody knows what Johnson's Great Society cost this country in terms of economic strength, competiveness, etc. etc.

Please notice that the author of this paper offers three prescriptives for this looming crisis: Privatization of Social Security, a retail sales tax, and universal health care. What the author of this paper doesn't seem to get is that Medicare/Medicaid has directly led to today's outrageous healthcare costs. And, quite frankly, looking at what passes for healthcare in Canada and Great Britain today, I think the system we have is not bad at all.

[Bottomfeeder 244]

Oh, another shrill nightmare scenario.

Now, given that we have another 30 years or so before Economic Doomsday, I'd be more inclined to worry about true dangers to our well-being, such as Kim Il Jung lobbing nukes at the west coast, an asteroid striking the planet, or Brad Pitt and Angelie Jolie become co-anchors for NBC News (Hey, if Katie Couric can do it....).

The key issue here is the government's attitude towards entitlements. Social Security, Medicare/Medicaid, and the new Free Prescription Medication for the Elderly (Courtesy of our jackass President. When the hell did he become a Liberal when it came to government policy?). If Americans face the choice between cutting entitlements or ratcheting up taxes, I think they'll vote against taxes this time around. Everybody knows what Johnson's Great Society cost this country in terms of economic strength, competiveness, etc. etc.

Please notice that the author of this paper offers three prescriptives for this looming crisis: Privatization of Social Security, a retail sales tax, and universal health care. What the author of this paper doesn't seem to get is that Medicare/Medicaid has directly led to today's outrageous healthcare costs. And, quite frankly, looking at what passes for healthcare in Canada and Great Britain today, I think the system we have is not bad at all.

249154[/snapback]

The problem with what passed as Medicare/Medicad legislation was the lack of price negotiation with the pharma companies. Normally, as with any insurance plan, prices are negotiated before the agreement is signed. This time there was no price negotiation. Another give away to big business paid for by the taxpayers of the future.

[otterinbham 0]

Oh, another shrill nightmare scenario.

Now, given that we have another 30 years or so before Economic Doomsday, I'd be more inclined to worry about true dangers to our well-being, such as Kim Il Jung lobbing nukes at the west coast, an asteroid striking the planet, or Brad Pitt and Angelie Jolie become co-anchors for NBC News (Hey, if Katie Couric can do it....).

The key issue here is the government's attitude towards entitlements. Social Security, Medicare/Medicaid, and the new Free Prescription Medication for the Elderly (Courtesy of our jackass President. When the hell did he become a Liberal when it came to government policy?). If Americans face the choice between cutting entitlements or ratcheting up taxes, I think they'll vote against taxes this time around. Everybody knows what Johnson's Great Society cost this country in terms of economic strength, competiveness, etc. etc.

Please notice that the author of this paper offers three prescriptives for this looming crisis: Privatization of Social Security, a retail sales tax, and universal health care. What the author of this paper doesn't seem to get is that Medicare/Medicaid has directly led to today's outrageous healthcare costs. And, quite frankly, looking at what passes for healthcare in Canada and Great Britain today, I think the system we have is not bad at all.

249154[/snapback]

The problem with what passed as Medicare/Medicad legislation was the lack of price negotiation with the pharma companies. Normally, as with any insurance plan, prices are negotiated before the agreement is signed. This time there was no price negotiation. Another give away to big business paid for by the taxpayers of the future.

249318[/snapback]

No. Actually the problem has far more to do with government getting into the middle of the healthcare business to begin with. That's the problem with Big Government advocates. When their pet programs fail, then they always succumb to the belief that what's really needed is either tinkering with the program's mechanics or trying to grow the program further. Left to the devices of the private sector, you would have seen a far more competitive price for pharmaceuticals. Instead, because the government doesn't understand the principle of bargaining, our costs keep skyrocketing. It's really simple.

[Bottomfeeder 244]

Oh, another shrill nightmare scenario.

Now, given that we have another 30 years or so before Economic Doomsday, I'd be more inclined to worry about true dangers to our well-being, such as Kim Il Jung lobbing nukes at the west coast, an asteroid striking the planet, or Brad Pitt and Angelie Jolie become co-anchors for NBC News (Hey, if Katie Couric can do it....).

The key issue here is the government's attitude towards entitlements. Social Security, Medicare/Medicaid, and the new Free Prescription Medication for the Elderly (Courtesy of our jackass President. When the hell did he become a Liberal when it came to government policy?). If Americans face the choice between cutting entitlements or ratcheting up taxes, I think they'll vote against taxes this time around. Everybody knows what Johnson's Great Society cost this country in terms of economic strength, competiveness, etc. etc.

Please notice that the author of this paper offers three prescriptives for this looming crisis: Privatization of Social Security, a retail sales tax, and universal health care. What the author of this paper doesn't seem to get is that Medicare/Medicaid has directly led to today's outrageous healthcare costs. And, quite frankly, looking at what passes for healthcare in Canada and Great Britain today, I think the system we have is not bad at all.

249154[/snapback]

The problem with what passed as Medicare/Medicad legislation was the lack of price negotiation with the pharma companies. Normally, as with any insurance plan, prices are negotiated before the agreement is signed. This time there was no price negotiation. Another give away to big business paid for by the taxpayers of the future.

249318[/snapback]

No. Actually the problem has far more to do with government getting into the middle of the healthcare business to begin with. That's the problem with Big Government advocates. When their pet programs fail, then they always succumb to the belief that what's really needed is either tinkering with the program's mechanics or trying to grow the program further. Left to the devices of the private sector, you would have seen a far more competitive price for pharmaceuticals. Instead, because the government doesn't understand the principle of bargaining, our costs keep skyrocketing. It's really simple.

249359[/snapback]

Sounds like allowing the free market to dictate prices, sounds good to me.

[tigerfan1234 0]

I didn't say it would happen, just that it could. We are not invincible. Great depression came right after the roaring 20's, you know. I do not have chicken little syndrome, just looking at this topic as a possible outcome if America doesn't get its budget spending straightened out and some other things.

[tigerfan1234 0]

If someone could explain the budget deficit to me, I would really appreciate it. We are something like 10 gigatrillions in debt( I don't know, just made the word up), and we continue to go farther in debt. How is that? The government has an agency that looks after the spending habits right? I have been in debt before, but my wife and I sat down and discussed a plan of action and didn't splurge on anything until we took care of business. Why doesn't the government do the same? How is it that the most powerful country on earth right now is so much in debt? Never quite understood this whole deal.

[Bottomfeeder 244]

If someone could explain the budget deficit to me, I would really appreciate it.  We are something like 10 gigatrillions in debt( I don't know, just made the word up), and we continue to go farther in debt.  How is that?  The government has an agency that looks after the spending habits right?  I have been in debt before, but my wife and I sat down and discussed a plan of action and didn't splurge on anything until we took care of business.  Why doesn't the government do the same?  How is it that the most powerful country on earth right now is so much in debt?  Never quite understood this whole deal.

249627[/snapback]

To put it simply, we will never get out of debt, period.

Katrina Audit Shows Fraud and Abuse (and this about the crux of it!)

The entire system is guilty of fraud and abuse. Show me one Department of the Federal Government that isn't guilty as charged, just one, Lot?

Dog booties, iPods and brewing equipment bought on Homeland Security credit cards

[otterinbham 0]

With the exception of our mortgage, my wife and I officially emerged from debt in March. The last car note was paid off then, while our credit cards were zeroed out in 2005. It feels really good, too.

[AUloggerhead 2,241]

If someone could explain the budget deficit to me, I would really appreciate it.  We are something like 10 gigatrillions in debt( I don't know, just made the word up), and we continue to go farther in debt.  How is that?  The government has an agency that looks after the spending habits right?  I have been in debt before, but my wife and I sat down and discussed a plan of action and didn't splurge on anything until we took care of business.  Why doesn't the government do the same?  How is it that the most powerful country on earth right now is so much in debt?  Never quite understood this whole deal.

249627[/snapback]

All education is self-education. Conquer your ignorance in this subject by taking a few economics courses: macro-econ & then micro-econ. Good luck.

[Bottomfeeder 244]

With the exception of our mortgage, my wife and I officially emerged from debt in March. The last car note was paid off then, while our credit cards were zeroed out in 2005. It feels really good, too.

249825[/snapback]

Attaboy. That is liberty. My definition of wealth is the absence of debt.

[tigerfan1234 0]

I think I will look into that AULoogerhead, thanks. I have always wondered about this subject. None of you know me personally, but I am someone who asks a million questions because I just like to learn. My grandpa called me 22 times Donovan. Don't mean to be a pain, just curious by nature.

[Bottomfeeder 244]

http://www.mises.org/media.aspx?action=category&ID=40

Or Google Video:

http://video.google.com/videoplay?docid=-466210540567002553

Audio of DiLorenzo on the economics of Fascism:

http://www.mises.org/multimedia/mp3/ss05/ss05-DiLorenzo.mp3

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