What will happen if the USA goes bankrupt?

What will happen if the USA goes bankrupt?
Aug 10, 2011 02:40
guest7890	The USA passed the motion to increase the USA debt ceiling on August 2. But the S&P immediately downgraded its rating on the USA debt from AAA to AA+, which caused a serious chaos in global stock markets. In history, the USA government has revised the USA debt ceiling 78 times since 1960. What if the USA fails to return its debt to its creditors? The USA government will collapse. It is possible in theory. The debt had been snowballing to 14.294 trillion USD in Feb, 2010. Sooner or later, the USA will not be able to pay back its debt. Why? The USA economy is still in recession and there is no sign that the USA economy will recover very soon. Then what will happen if the USA goes bankrupt? The global recession will occur again. The current situation is: the USA has “kidnapped” its creditors. It has no money to pay its debt but has to continue to borrow money from them. Its creditors have no choice but continue to lend money to the USA because the USA government will run out of money if they stop lending money to the USA. As a result, all creditors will suffer serious losses. Lending money to the USA is like putting your money in the black hole. The creditors know about this but they haven’t stopped their crazy behavior. If they do it, the USA will “die” and the “death” of the USA will have butterfly effect on other nations.

Aug 10, 2011 02:40

guest7890

The USA passed the motion to increase the USA debt ceiling on August 2. But the S&P immediately downgraded its rating on the USA debt from AAA to AA+, which caused a serious chaos in global stock markets. In history, the USA government has revised the USA debt ceiling 78 times since 1960.

What if the USA fails to return its debt to its creditors? The USA government will collapse. It is possible in theory. The debt had been snowballing to 14.294 trillion USD in Feb, 2010. Sooner or later, the USA will not be able to pay back its debt. Why? The USA economy is still in recession and there is no sign that the USA economy will recover very soon.

Then what will happen if the USA goes bankrupt? The global recession will occur again.

The current situation is: the USA has “kidnapped” its creditors. It has no money to pay its debt but has to continue to borrow money from them. Its creditors have no choice but continue to lend money to the USA because the USA government will run out of money if they stop lending money to the USA. As a result, all creditors will suffer serious losses. Lending money to the USA is like putting your money in the black hole. The creditors know about this but they haven’t stopped their crazy behavior. If they do it, the USA will “die” and the “death” of the USA will have butterfly effect on other nations.

Aug 11, 2011 01:50	#1
DREAMLIFE Points: Join Date: Sep 5, 2007 Status: Offline	GUEST7890, You think too much. The U.S. economy plays a very important role in world economies. If the USA goes bankrupt, the whole world will be in a mess. Other nations won't let this happen even they have been kidnapped by the USA.

Aug 11, 2011 23:17	#2
GUEST19140	Dreamlife knows what she is talking about.

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