Community | March 21, 2009 | 42 comments

From CNBC: U.S. Now Bankrupt

source: http://www.cnbc.com/id/29769858

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Ihatethemall
Global stocks traded higher, as did the dollar against the euro, Thursday after the Federal Reserve's surprise announcement it would buy $300 billion in US Treasurys in order to help the ailing economy.

But experts tell CNBC they have concerns over the Fed's latest move and that the current national balance sheet is a disaster.


Technically, the U.S. is already "bankrupt" because it has a debt that is almost four times the size of its economy, says Puru Saxena, CEO of Puru Saxena Wealth Management. He tells CNBC that the U.S. is at risk of hyperinflation
Stephen Roach, chairman for Asia at Morgan Stanley does not view the Fed's plan to buy $300 billion worth of long-dated government debt as a constructive sign for prospects going forward.


The Fed pumping money into Treasurys won't help, says Martin Weiss, president of Weiss Research. He also discusses what can be done to turn the US economy around.

America is arrogant to deny their similarity to Japan's economy, says Stephen Roach, chairman for Asia at Morgan Stanley. He tells CNBC that the US economy is in a "zero-interest rate" mode, like Japan.
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42 comments // From CNBC: U.S. Now Bankrupt

  • justaslost
  • borymp
  • maisry
    • 0
      maisry  

    • What happens if we don't survive? I can't picture the ramifications of financial collapse. Will we have to start living without hospitals, schools, police, fire protection, water supply? Will our creditors own us? Will the next generation be speaking Chinese?

    • 3 years ago
  • neocongo
    • 0
      neocongo  
    • maisry:

      I don't believe you need to picture the ramifications of a financial collapse because I don't believe it will come close to happening. We will run up a large deficit, nationalize some banks, and re-regulate our finance industry. In the mean time, a lot of people are going to lose their jobs. We need to stop that as quickly as possible.

      In the words of Paul Mau'dib, "Fear is the mind killer."

    • 3 years ago
  • pissedoffinarkansas
    • 0
      pissedoffinarkansas  
    • maisry:

      You just keep believing the official bullshit line there Neo. Do you really think they are going to tell you the truth. That we are teetering on the brink? Hell no!! Then their jobs are toast. It's better that everyone Go down at the same time. That way they have a chance of holding on to at least some of their power. Learn to read between the lines. Go ahead it's ok. It's not illegal.Yet!

    • 3 years ago
  • neocongo
  • tbowman131
  • pigwidgeon
  • jh64487
    • 0
      jh64487  

    • er...what about these comments

      Quantitative Easing & the Fed's Balance Sheet

      Thomas Lam, vice president and senior treasury economist at UOB, says the Fed's latest moves such as to buy long-dated Treasurys will stretch its balance sheet and pump more liquidity into economy.

      The Fed's Recent Moves are Right

      "This decision to purchase long-term assets, mortgages, long-term treasury securities, is the right thing to do. The Fed would clearly rather err on the side of inflation rather then depression," said Dennis Gartman from the Gartman Letter. He also touches on the housing market in the US as well as the TALF.

      and technically, the US has been in "debt" before haven't we? isn't that a deficit? wasn't that the norm until clinton? and then the norm again after the next republican of course

    • 3 years ago
  • mutedmajority
  • jh64487
    • 0
      jh64487  
    • mutedmajority:

      nah, you're wrong because the only way china could win would be nukes ("win"). We couldn't beat china IN china. But they couldn't beat the US anywhere else (no navy, no real means to mobilize troops, crappy ass old airforce) then theres the rebellions that would spring up in the west whereas the US would become super patriotic. We would also have the support of the Western powers (to some extent) and Russia def wouldn't bail out china.

      no, a war would only benefit us as we could cancel our debt with china. if i'm wrong about that let me know, citations would be nice :)

    • 3 years ago
  • Tayllerand
    • 0
      Tayllerand  

    • The bankers who control the economy of the world they planned this whole mess before hand , the reason why its because they want a world goverment.
      Didnt you see lately on CNN the Minister of England Gordon Brown with President Obama talking about the NEW WORLD ORDER and in NBC Henry Kissinger telling reporters that Obama should start thinking about the NEW WORLD ORDER, check the videos on youtube .
      The NEW WORLD ORDER is not a hoax its real.
      People WAKE UP and dont be a ZOMBIE.

    • 3 years ago
  • WhiteNoise
  • Agorful
    • 0
      Agorful  

    • My advice to Washington, "Buy an answering machine."

      If you notice a number on your caller id, as coming from one of your creditors, let the answering machine get it.

      That's what I do. lol

    • 3 years ago
  • holyshiite
  • ras_menelik
  • clownpuncher
  • holyshiite
  • cybexg
  • DeliaTheArtist
  • PressCore
    • 0
      PressCore  
    • DeliaTheArtist:

      Exactly right. It takes a Banker to know that Time is Money. The place holders on the National debt look like light years converted into land miles scale as we crawl along at a such a snail's pace. We can't even fathom how hyperinflated & devalued our money already was 45 years ago, so it's for sure we can't even begin to fathom how the national debt mushroomed like a nuclear first strike from $4 Trillion in 1980 when Jimmy Carter was still in the white house to a whopping $64 Trillion(minus)
      today. The Gods must truely be laughing at the primate humans proceeding along like mollasses in a deep freeze comes out of a bottle.

    • 3 years ago
  • PressCore
    • 0
      PressCore  

    • It's debt is almost 4 times the size of it's economy. Man, that's an understatement. In August 2007 the North American Corporation Waste Management News Service reported that the "secret" National Debt was a whopping $64 Trillion dollars. When you realize that interest compounds on a debt by adding principal oweddirectly to its weight, then after the past 19 months since, it's got to be as supermassive as the black hole in the center of the Milky Way Galaxy. The debt must be closer to $72 Trillion now. Divide that by the annual GDP of the USA which is $12 Trillion, and
      the debt to GDP ratio is 6 to 1. I'm not mentioning this to quibble over numbers, but to point out that the 1913 passage of the Federal Reserve Act, by its very
      design may have been intended to cause our money system to self destruct by foreign sabotage. The easiest, and safest way to take over a country is never to attack it from outside it's borders, but rather to take over it's money system. China has the largest Gold Supply in the entire world, so their money is safe, as is Switzerlands. But the $800 Billion solid copper Amero coins which the Denver mint issued in 2007 then shipped to China's Banksas payment on the part of our National Debt they own shows they don't trust Federal Reserve Notes. The dollar will self destruct eventualy. The Government knows what it has to do to reverse the last 96 years of debt enslavement. They have to outlaw the internal combustion gas engine to put the World Big Oil Monopoly out of business by replacing it with electric cars. They have to put the F(red) under direct control of the Treasury Secretary, and the President so that
      no more national heros like JFK will be Murdered for
      the USA attempting to take back our country from
      the foreign banking cartel that owns the F(red). And
      then begin issuing U.S. Notes redeemable for Ameros
      as an alternate money supply. And they have to universaly legalize the 10,000 uses of Cannabis products, taxing them exclusively to pay off the National Debt. It may take at least 4 years to accomplish all that if they resolved to this Spring. But
      it's better to survive with a bold and aggressive plan that will shake off all the institutional parasitism, than
      to keep talking while the ship sinks, isn't it ? I saw newsreels on celluloid from the Historical archives in which after WW1, the German people went through a period of hyperinflation. People rolled in wheelbarrows
      full of worthless currency they couldn't buy a loaf of bread with. Those are the conditions under which martial law and World Wars are likely to happen. The entire World is in such deep shit because of the Big Oil/Big Chemical/Big Pharma/Big GMO parasites that
      suck the lifeblood of this countries' people dry every day. The world has followed the USA as its leader, so
      the World is in these dire straights because of the
      money for nothing scams instead of real production and savings that used to characterize the USA when it's money was on the Gold & Silver standards. You can actualy trace the nosedive of our standard of living as the debt increased. Remember too, that the personal debt of Americans surpasses even the national debt. We're drowning in it. We need to start producing more than consumers, and fast.

    • 3 years ago
  • Highr0ller
    • 0
      Highr0ller [removed]  

    • “The war in Iraq began to delay the US crisis, which started brewing in the US economy at the end of 2000,” he said.

      The Americans have been trying to raise their economy with the help of military actions for decades, since the Great Depression of the 1930s. A war boosts the nation’s industry, even if a recovery is based on defense orders.

    • 3 years ago
  • Highr0ller
    • 0
      Highr0ller [removed]  
    • Image

    • USA Has Two Options To Save its Economy:

      Declare Default or Trigger War

      By Ekaterina Yevstigneyeva

      March 20, 2009 "Pravda.Ru" -- - The United States is the largest borrower in the world. The US national debt has already exceeded the level of 11 trillion dollars as of the beginning of 2009 and continues to grow like an avalanche. Experts say that the USA has only two ways to solve the problem: to either declare default or trigger off a war.

      According to experts’ estimates, the probability of default on US treasury bonds is very high at the moment. The rumors are not new at all. Moreover, experts say that the USA has already started to work on an opportunity to refuse from the dollar in order to avoid debt payments.

      Dmitry Abzalov, an expert with the Center for Russia ’s Political Conjuncture, said that governments currently take on the debts of corporations. “The corporate debts crisis thus becomes the crisis of governmental debts. The US debt in the beginning of 2009 amounted to $10.6 trillion. Taking into consideration the current deficit budget of the United States , as well as the prospects for the deficit of the budget during the current year, it becomes clear that the US Treasury bond market is based on no alternative whatsoever. There is no other way for investors to invest their funds with treasury bonds being the only option,” the expert told Bigness.ru.

      When the world economy recovers, investors will realize that there are plenty of other opportunities for investments, the European bonds, for example (if the European economy recovers from the crisis too, of course), or the bonds of developing countries.

      “The pyramid of US bonds will collapse in this case. The debt percentage grows every day, which makes the USA borrow more and more on a daily basis. America will have no chances to pay off the debt,” the expert said.

      Inga Foksha, an analyst with Aton Investment Company, agrees that the US default is q.......................

    • 3 years ago
  • pissedoffinarkansas
  • kennymotown
    • 0
      kennymotown  

    • And I suppose you would throw the Bush administration the life jackets. You are an ill informed individual or your just another fascist millionaire unclecharlie.

    • 3 years ago
  • clownpuncher
  • unclecharlie
    • 0
      unclecharlie  

    • Burn, baby, burn.....just give me an excuse to flee these shores for greener pastures....Obama is the captain of a sinking ship.....and I hope he goes down with it.....I wouldn't throw him a life preserver or life raft- I would throw him an anvil.....

    • 3 years ago
  • wildspirit
  • Jiji_Kero
  • nkeg87
  • ras_menelik
    • 0
      ras_menelik  

    • fresh of their report of the year(the original remake of reefer madness"Marijuana Inc.")

      the financial network of america is moving on to the issue of the day with it's ground braking................. .............................."Cruise Inc."Big Money on the High Seas

    • 3 years ago
  • aliquid_
  • 1percent
  • Agorful
  • neocongo
  • anikhanj
  • Ihatethemall
  • kennymotown
    • 0
      kennymotown  

    • It sure in the heck make a big difference during the last depression when FDR was president. The workers of this country have keep the dream going not the friggin rich or repugnants.

    • 3 years ago
  • Enstajlomn
  • kennymotown
    • 0
      kennymotown  

    • The economic melt down continues! we are not at bottom yet. Thank god we have a democrat in office when the bottom finally does come.

    • 3 years ago
  • pissedoffinarkansas
    • 0
      pissedoffinarkansas  
    • kennymotown:

      When the "bottom" really does come it isn't going to matter who is in office. The gov. will be insolvent and we'll all be speaking Chinese or Russian(just kidding about the speech, but i'm pretty sure the rest is right).

    • 3 years ago
  • cerealforeal
  • nkeg87
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