What happens if a country goes bankrupt
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17-09-2012, 08:05 PM
RE: What happens if a country goes bankrupt
(17-09-2012 04:17 PM)earmuffs Wrote:  
(17-09-2012 08:56 AM)Logica Humano Wrote:  If you print more money, the money you are printing becomes less valuable. It doesn't solve anything.

Yes I am aware of the definition of inflation.

Quote:it has to be understood that when a country, or any other political district goes bankrupt, it is just like any other organization that fails

Well not exactly.
When a business fails it goes out of business, that's it, the end. Workers lose their jobs and go else ware.
When a government fails the government can't go any ware in the sense that you can't have a country without a government and so it simply continues to operate.

That countries economy may now be in the crapper, but the government is still there.

Quote:That would be a new constitution - right???

No, all that sort of thing would remain (though it may change). I'm saying economically it would need to start again. It would need to rebuild trust, rebuild trade etc..

Like take Iceland for example. Nobody is going to want to do business with Iceland because they went tits up. But slowly and surely as confidence in the Icelandic economy increases business and investment will pick up.

There's one thing that a country may benefit from. Its products prices will go down and that may make buyers more interested... we did that, among other things

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17-09-2012, 08:46 PM
RE: What happens if a country goes bankrupt
This is not a speculation. It is happening now.
-The US is printing money. Look up the M2 money supply.
http://en.wikipedia.org/wiki/Money_supply
-China has stopped buying US debt. Their economy is crashing.
-The Fed Reserve is holding interest at zero so that the interest paid on the debt is small enough to handle.

Hyperinflation may take off very soon.
Interest rates will soon be forced upward by inflation.
Printing money is the same as taxing wealth.
Devaluing the dollar reduces the value of the US debt.
Economic growth will stagnate.

When the US economy collapses it will bring the world down with it.
Why?
The EU is a major trading partner. Exports will crash and massive layoffs will follow. Europe can't handle such a hit.
Canada and Mexico export massive amounts of oil to the US. That dies.
Mexico exports its poor to the US. They'll come home.
There is soooooooo much more, but you get the idea.

BTW, unfortunatly I'm not just some nut (though I am nuts) I'm an econ prof.
Yep, I teach and do research on this stuff.

If you wonder why the politicians don't seem very worried, it's like being on a party bus and the bus is heading toward a cliff. You try to warn the crowd, but they just keep wanting to do more shots. WTF man, just party with them. It had to end sometime. Why not now.

The old gods are dead, let's invent some new ones before something really bad happens.
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17-09-2012, 09:39 PM
RE: What happens if a country goes bankrupt
It's hard for people to imagine the US economy completely failing. I mean this is a country with a GDP of 15 TRILLION dollars and around 1.5-2% growth.

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18-09-2012, 09:48 AM
RE: What happens if a country goes bankrupt
(17-09-2012 09:39 PM)earmuffs Wrote:  It's hard for people to imagine the US economy completely failing. I mean this is a country with a GDP of 15 TRILLION dollars and around 1.5-2% growth.

Gawrd bress Amerika.

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18-09-2012, 02:21 PM
RE: What happens if a country goes bankrupt
(17-09-2012 04:17 PM)earmuffs Wrote:  
Quote:it has to be understood that when a country, or any other political district goes bankrupt, it is just like any other organization that fails

Well not exactly.
When a business fails it goes out of business, that's it, the end. Workers lose their jobs and go elsewhere.
Not always, maybe you have heard of General Motors and how President Obama reorganized it into a thriving company; in fact, Vice-president Joe-Joe Biden said it is "alive," as if it is people and not a corporation.
(17-09-2012 04:17 PM)earmuffs Wrote:  When a government fails the government can't go anywhere in the sense that you can't have a country without a government and so it simply continues to operate.
Not in an advanced society such as ours that would insist on efficiency.

(17-09-2012 04:17 PM)earmuffs Wrote:  
Quote:That would be a new constitution - right???

No, all that sort of thing would remain (though it may change). I'm saying economically it would need to start again. It would need to rebuild trust, rebuild trade etc..
Maybe you are stuck on the old model that does not understand reorganization, and believes that the constitution is a perfect document like Rush Limbaugh.
Quote:RUSH: Folks, even though we're questioning it after last week's health care decision, we still are the United States of America. We are still one nation under God. We still admire our Founding Fathers. And we are doing everything we can to defend and protect our brilliant Constitution and Bill of Rights.

It's two hundred years old, and he knows business organizations have to reorganize because of the evolution of society and the technology that guides society.

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Theism - ontological doctrine that posits a supernatural entity creates and defines reality
Atheism - political doctrine opposed to theist doctrine in public policy
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18-09-2012, 07:27 PM
RE: What happens if a country goes bankrupt
Quote:Not always, maybe you have heard of General Motors

Sure, but that doesn't happen every day.
In fact the GM case would be pretty much like the government "too big to fail" which is my point.

Quote:Not in an advanced society such as ours that would insist on efficiency.

And just like the GM case, yes change would occur in the sense that things would become more efficient, but it would still remain which is the point.

Quote: and believes that the constitution is a perfect document

Just to clarify, I'm not American, BUT I do not think this at all, I think your constitution is outdated in many regards and needs to be 'updated'.


This isn't about woulda or shoulda, it's about what would realistically happen.
Realistically America are obsessed over their Constitution, they give the impression that they would all rather die then change it in the slightest.
So, again, if the US was to fail yes their would be major reform in the economic department as well as reform in perhaps other areas related to welfare and such but overall the constitution would stay, capitalism would stay and 'democracy' would stay.

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20-09-2012, 02:10 AM
RE: What happens if a country goes bankrupt
I don't see it working until the u.s. goes belly up. We would actually need to start manufacturing a great many products again. Problem is everyone in this country wants to be management and tell others what and how to do things, however nobody wants to be the worker doing the job. The Chinese are for that.
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20-09-2012, 01:24 PM
RE: What happens if a country goes bankrupt
(17-09-2012 04:17 PM)earmuffs Wrote:  When a government fails the government can't go any ware in the sense that you can't have a country without a government and so it simply continues to operate.

That countries economy may now be in the crapper, but the government is still there.

Upon further contemplation - I think you are describing the present situation with the USA and the world.

And, a new constitutional system is neccessary to corect it in accordance with our Western Philosophical faith in explicit social contracts.

Humanism - ontological doctrine that posits that humans define reality
Theism - ontological doctrine that posits a supernatural entity creates and defines reality
Atheism - political doctrine opposed to theist doctrine in public policy
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20-09-2012, 01:39 PM
RE: What happens if a country goes bankrupt
(20-09-2012 01:24 PM)TrainWreck Wrote:  
(17-09-2012 04:17 PM)earmuffs Wrote:  When a government fails the government can't go any ware in the sense that you can't have a country without a government and so it simply continues to operate.

That countries economy may now be in the crapper, but the government is still there.

Upon further contemplation - I think you are describing the present situation with the USA and the world.

And, a new constitutional system is neccessary to corect it in accordance with our Western Philosophical faith in explicit social contracts.

A reformed constitutional system is necessary to remain in accordance with social western philosophical contracts.

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20-09-2012, 03:26 PM
RE: What happens if a country goes bankrupt
(20-09-2012 01:24 PM)TrainWreck Wrote:  And, a new constitutional system is neccessary to corect it in accordance with our Western Philosophical faith in explicit social contracts.
It's more likely that you will win the jackpot in the lottery than that the U.S. consititution will be revised. Laughat

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