Porter Stansberry, of the S&A Digest, writes What you must know about bankruptcy of the United States:
My point? Our government is bankrupt – right now, today. Sure, it might still have access to the credit markets. And yes, since it owes dollars, it can always simply print more. I realize the government can’t go bankrupt they way GM did. Our bondholders won’t end up getting title to our national parks and the strategic petroleum reserve. No, that’s not going to happen.
What will happen?
I can’t say for certain. But here’s what I know: It’s not a good idea for the world’s largest debtor and the world’s strongest military power to go broke. Bad things happen in democracies when the government goes broke. At the very least, our creditors will demand much higher interest rates and abandon the use of our currency. That’s going to devastate our standard of living.
These facts and figures should cause you to wake up and think about what you’re doing with your savings. Here’s a hint: Don’t save dollars. And don’t count on whatever the government has promised to you, whether it is a retirement or medical care. The government is bankrupt. It won’t be able to deliver.
The politicians in DC continue to make promises. Some of these politicians actually believe that our government is like a business and is able to produce goods and create money, much like the free market. Others know full well that what they are promising can’t ever be paid back, but they do it anyway so that they can literally buy themsevles another term in office.
The mathematics of all of this are very clear. We cannot continue to spend money we don’t have indefinitely. A five year old could figure this out.
As much as I believe in the ideal that the American people should have faith in their elected representatives, this is not the case in America today. If you believe the promises your government is making to you, and you live your life with the idea that all of this will continue in perpetuity, then you will end up just like them…broke.
Hat tip to dad for sending this one over (SHTF Planning – it’s a family affair)