Is America Already Bankrupt?

[Donnachaidh]

http://newsjunkiepost.com/2011/02/02/is-america-already-bankrupt/

The United States national debt has passed $14 trillion. For each dollar spend by the federal government 40 cents is borrowed. So technically, the US is already bankrupt because it has a debt that is almost four times the size of its economy. Lawmakers in Congress are saying that their major priority is to tackle and find ways to reduce the national debt, yet they are unwilling to see that the only way to avoid fiscal insolvency is to have a dual approach: Cut spending on one hand, and increase taxation on the other. Short of this, the United States will never get out of this giant hole that it has dug for itself. During his state of the union speech, President Obama said that we need a new “sputnik moment”. America’s sputnik moment should be to make drastic cuts in its military spending by getting the US military out, sooner than later, of Afghanistan, Iraq, Germany, Japan and South Korea.



Cut Spending AND Increase Taxes Or Face Dire Consequences

Not only the US is in deep financial troubles federally, it is also in dire shape at state and local levels. 44 states are currently facing big budget gaps, and some are even considering bankruptcy as a way out. America’s policymakers are facing the daunting task to tackle a dreadful fiscal challenge. The 2008 recession has caused the sharpest decline in state tax revenue on record with state tax collections at 12 percent below pre-recession level. Meanwhile, the need for state funded services has increased. Even after making deep budget cuts, especially in social services, over the last three years, states are now facing what seems to be insurmountable budget gaps.

Fiscal 2012 is projected to be the most difficult year on record with 44 states and the District Of Columbia projecting a budget gap totaling $125 billion. States options for addressing those budget gaps are dwindling fast. By the end of fiscal year 2011, federal assistance for states will be largely gone. State governors are now faced with a grim reality to prevent their fiscal house to become completely underwater.

More at the link --

[Hannah Bell]

1. uh -- no. but neo-liberalism is, & the ruling class is.

[JCMach1]

2. +1... we are entering a period of 1848-style revolution on a global scale.

[JuniperLea]

3. We've been bankrupt for many years already...

BushCo saw to it.

[barbiegeek]

7. yep

[Hannah Bell]

11. bullshit.

[The Magistrate]

4. Since, Sir, The Author Seems Unaware Of Basic Knowledge, No Need To Take This Seriously

G.D.P. is roughly fourteen trillions, at present.

[emulatorloo]

6. Don't confuse me with the facts n/t

[Statistical]

12. Even more relevant is net worth of United States is $55 trillion.

You can't be bankrupt if you have a positive net worth.

[jtown1123]

5. It is not possible for a country like the U.S. to be "bankrupt"

[Broderick]

8. Watch the Mercedes blow past

the homeless on the benches and corners and tell me if America is bankrupt. It is bankrupt morally for not taking care of those in need.

[barbiegeek]

9. yep, that too

[SammyWinstonJack]

14. +1000!

[Statistical]

10. Hardly unless you consider $55 TRILLION in wealth ($180,000 per person) to be "broke"

This is net worth. All assets - all debts (everything from federal "national" debt to credit cards).

That is roughly $180,000 for every man, woman, and child in the country. Maybe a better measure is per households, it works out to roughly $523,000 per household. Now this wealth is not evenly distributed (part of the problem) but it makes about as much sense to say "the US is bankrupt (with per capita net worth of $180K" as it does to say "Mr. Smith with a net worth of $180K net worth is bankrupt."

[BrklynLiberal]

13. If not financially, certainly morally.