British Economy Near Bankruptcy?

[Wesley]

At some point before our government implodes, let's hope they get smart and realize that the government needs to downsize itself from time to time just like every corporation does. When is the last time our federal government laid hundreds or even thousands of people off? Has it ever happened?

Yes, we are over 10 trillion borrowed and 45 trillion in future commitments.

Basically medicare/Medicaid/sociasl security/interest eats up 77 per cent of the annual $3.2 Billion govt budget. Discretionary portion which Congress votes on is Defense and Homeland Security and other small piker items which totals only about $800B. Since the interest payment to the Chinese is already $300 billion, if interest borrowing rates went up 50% due to inflation and we just took on 2-3 trillion new debt if things go south, I would hedge to say the total discretionary spending allowance would be limited to only $400 billion which will not cover the wants and desire of the people.

I would not want to be the new Sec of Treasury.

The only way to stay above water is to raise tax revenues on someone.....in 2009 or 2010.

[dosry5]

What is China actually buying it with?

Who really has what?

Think about that for a while.

They're buying up those left over tickets to ensure eiu continues the sell-out streak.......

[brianhos]

Yes, we are over 10 trillion borrowed and 45 trillion in future commitments.

Basically medicare/Medicaid/sociasl security/interest eats up 77 per cent of the annual $3.2 Billion govt budget. Discretionary portion which Congress votes on is Defense and Homeland Security and other small piker items which totals only about $800B. Since the interest payment to the Chinese is already $300 billion, if interest borrowing rates went up 50% due to inflation and we just took on 2-3 trillion new debt if things go south, I would hedge to say the total discretionary spending allowance would be limited to only $400 billion which will not cover the wants and desire of the people.

I would not want to be the new Sec of Treasury.

The only way to stay above water is to raise tax revenues on someone.....in 2009 or 2010.

Or cut spending.

[kgreeny]

What happens if we tell Japan and China that we are broke and are no longer going to pay. In other words, screw-off we aren't paying. Will they repo the white house?

[PGreen ISU '92]

What happens if we tell Japan and China that we are broke and are no longer going to pay. In other words, screw-off we aren't paying. Will they repo the white house?

The value of the dollar would be literally ZERO. We would not be able to buy foreign goods or services. That and it is morally wrong to not repay debts we said we would pay back.

[Wesley]

Can we repay them in funny dollars with Jimmy Carter inflation?

[markshir]

Can we repay them with spider drawings? That seems to be the way to go if so. Are there moral considerations that would prevent that though?

[weR138]

What is China actually buying it with?

Who really has what?

Think about that for a while.

Who profits? - V. I. Lenin