This is pasted from NEWSWEEK.Com; not exactly a right wing magazine. As you read this keep in mind that last Tuesday Moody's rating service stated that "US treasury bonds can no longer be viewed as "risk-free." Their next step is to lower the US debt rating whereupon I believe our Govt. devalues our currency.
Type in GOOGLE= Results 1 - 10 of about 2,060,000 for USA bankrupt. (0.51 seconds)
Who profits when the US goes bankrupt, Hint (no one)
According to the Bureau of Public Debt, there is $8.15 trillion in U.S. government debt owned by the public. In addition, now that the United States has taken control of the failed mortgage giants Fannie Mae and Freddie Mac, the government is formally standing behind the debts of those two entities, which surpass $5 trillion. Now, let's imagine a world in which the U.S. government, lacking the will to tax or cut spending, can't scrape up the cash to stay current on interest payments and can't roll over debt as it matures. That would trigger a huge decline in the value of treasuries and mortgage-backed securities. The balance sheet of every U.S. financial institution—JPMorgan, Goldman, Citi, your neighborhood bank, the Federal Reserve, money-market funds—would be decimated. There wouldn't be a single solvent bank, insurer, or company in the United States. The large multinational banks, which have significant U.S. operations and plenty of this stuff on their books, would likewise be wiped out. Oh, and foreign holders of U.S. debt—see this list topped by China and Japan—would be toast, too.
