Sunday, December 21, 2008

The Debt of the United States of America Approaches Insolvency

The hits just keep on hitting with this economy. Now we're approaching insolvency. I need to find Morpheus, so he can show me just how far down our economy rabbit hole will go.

In the early months of next year, when the official data are published, the United States will run a serious risk of insolvency. This would involve, in the first place, a valuation crisis for the dollar. After this, the United States could face a social crisis like that in Argentina in 2001. A crisis in U.S. public debt would likely have a severe impact on the Asian countries that are the main exporters to the United States, China first among them.

Source: Spero News

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