The Government Is Bankrupt and Will Destroy the Economy

Most people don't understand the unsolvable problem the U.S. government has created for itself and its citizens.  Sovereign default is beyond a likelihood; it is inevitable. When and which (possibly all) obligations are defaulted on will be determined by panicked politicians under duress.  A complete financial and economic collapse appears unavoidable.  I hope that is the worst that will occur. Official Government Debt The official federal debt is $16 trillion.  This debt represents 100% of current GDP.  Ken Rogoff and Carmen Reinhart studied countries with high levels of government debt.  This Time Is Different: Eight Centuries of Financial Folly contains their complete findings.  The authors concluded: In our study "Growth in a Time of Debt," we found relatively little association between public liabilities and growth for debt levels of less than 90 percent of GDP. But burdens above 90 percent are associated with 1 percent lower median...(Read Full Article)

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