Friday, Jul 14, 2006

US 'could be going bankrupt'

Daily Telegraph: News Article

The United States is heading for bankruptcy, according to an extraordinary paper published by one of the key members of the country's central bank.

Posted by Lloyd @ 01:41 PM (586 views)
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8 Comments

1. talking rot said...

Scaremongering. This report is best ignored.

Friday, July 14, 2006 03:45PM Report Comment
 

2. Miniftse said...

Ignore at your peril - I think it's spot on. Not very well written but very true in many respects. Lot's of evidence to support it, just look what gold has done since 2001.

Friday, July 14, 2006 04:07PM Report Comment
 

3. Retiredbanker said...

People often assume that politicians are stupid, but this is not usually the case. They know full well that future
liabilities for welfare, pensions etc. cannot be met, but they will be long gone (after having enjoyed their own gold-
plated retirement benefits) by the time the balloon goes up.

Friday, July 14, 2006 04:09PM Report Comment
 

4. bidin'matime said...

>>Paul Ashworth, of Capital Economics, was more sanguine... Expecting a fix now is probably asking too much of short-sighted politicians who have no incentives to do so. But a fix, or at least a succession of patches, will come when the problem becomes more pressing."

That's sanguine?!

Friday, July 14, 2006 04:59PM Report Comment
 

5. Indiablue19 said...

Retired Banker, your version would seem correct. And the balloon is already launched since US pensioners are now receiving warning that they can expect Medicare deductions from their social security payments to nearly DOUBLE next year. In fact I just heard this from a relative in the USA last night who already pays over 200 pounds a month supplement for her routine medications. Almost 100% inflation in twelve months for pensioners! And there is no option for the elderly to refuse Medicare. Anyone who did would be choosing to be entirely without medical cover. Please tell me how a 4 or 5 percent social security rise is going to compensate the elderly for this. This must mean that quite a few old people who were living close to the edge in the USA will be impoverished nearly overnight.

Friday, July 14, 2006 07:24PM Report Comment
 

6. Blindleadtheblind said...

1971 was the bankrupcy, its just taken 30 odd years for that reality to set in, sadly the majority will be blessed by ignorance while as Retiredbanker says, the ruling classes will be doing fine with a golden retirement.

Saturday, July 15, 2006 05:55AM Report Comment
 

7. Rogerthedodger said...

Its plain that this is scaremongering, although nessacery scaremongering as the sooner this is dealt with the better. Warren buffett doesn't consider that future fiscal burdens are all that serious if the promises are changed slightly - later retirement age etc.. Greenspan has been pressing for a poltical solution to this. What is more alarming are the present imbalances..

Saturday, July 15, 2006 08:53AM Report Comment
 

8. Indiablue19 said...

Dear Rogerthe...
You should know that retirement ages in the USA already were significantly increased. It used to be 62 for women, 65 for men. Workers in the States will already not be retiring until age 66 to 70, according to their current age -- and regardless of sex. Unless you are extremely wealthy, early retirement there [62] is a past luxury. My own husband has just retired here in the UK at age 64 and I am only too aware he couldn't possibly have worked longer and lived to tell about it. How will those in his position manage? This sounds like a growing culture of "work until you drop." In other words, slaves for those who have enough clout and capital to dominate and use us up. And I imagine it is the same in the US as here, that is, we may be expecting to increase the retirement age to 70 -- but after age 50 who can expect to be hired, especially if there is an economic downturn and significant unemployment? Further to that, have you noticed how unhealthy young people are these days? Drinking their breakfast, dinner and supper until they have cirrhosis by the age of 24? Rather than working longer, they can cheerfully expect to be an entire liability.

Saturday, July 15, 2006 04:29PM Report Comment
 

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