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Politics : American Presidential Politics and foreign affairs -- Ignore unavailable to you. Want to Upgrade?

To: Peter Dierks who wrote (8914)	5/26/2006 2:09:44 PM
From: Jim S	Read Replies (1) \| Respond to of 71588

Never is a very long time. A formerly well off person whose spending expanded with their income growth and then hit with an income reduction will suffer and might declare bankruptcy if their spending does not decrease with their income. A country is no different. Some of the signs are already starting to show. Did I say "never?" If I did, I misspoke. There are big differences between a country that can print its own money and an individual that overspends. For a country to "go bankrupt," not only does it have to be unable to provide a valid currency to pay it's debts, it also must lose the support of all other countries that have invested in it. It's like the old analogy that if you owe the bank $10,000 and can't pay, YOU have a problem. If you owe the bank $10 million, and can't pay, the BANK has a problem.