Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: John Vosilla who wrote (4840)	3/10/2008 11:29:15 PM
From: Real Man	Read Replies (3) \| Respond to of 71452

Right. It's the rates that drive the dollar down for now, and that should be limited. However, if Ben starts pressing inappropriate buttons in order to save and bail out every speculator, he may achieve just that, and the real economy will go to Hell. So, it depends, I'd say.

To: John Vosilla who wrote (4840)	3/11/2008 11:36:56 PM
From: Real Man	Respond to of 71452

Insolvency of US government financialsense.com Insolvency is a financial condition experienced by a person or business entity when their assets no longer exceed their liabilities, commonly referred to as 'balance-sheet' insolvency, or when the person or entity can no longer meet its debt obligations when they come due, commonly referred to as 'cash-flow' insolvency. In some jurisdictions, it is an offence under the insolvency laws for a corporation to continue in business while insolvent, though in others the business may continue under a declared protective arrangement while alternative options to achieve recovery are worked out. Increasingly, legislatures have favoured alternatives to winding up companies for good. It is also usually grounds for a civil action, or even an offence, to continue to pay some creditors in preference to other creditors once a state of insolvency is reached. (The term insolvency is often incorrectly used as a synonym for bankruptcy, which is a distinct concept, except in Germany. In some jurisdictions, a state of insolvency may lead to a legal finding of bankruptcy.) en.wikipedia.org Government debt Although the terms bankrupt and insolvent are often used in reference to governments or government obligations, a government cannot be insolvent in the normal sense of the word. Generally, a government's debt is not secured by the assets of the government, but by its ability to levy taxes. By the standard definition, all governments would be in a state of insolvency unless they had assets equal to the debt they owed. If, for any reason, a government cannot meet its interest obligation, it is technically not insolvent but is "in default". As governments are sovereign entities, persons who hold debt of the government cannot seize the assets of the government to re-pay the debt. However, in most cases, debt in default is refinanced by further borrowing or monetized by issuing more currency (which typically results in inflation and may result in hyperinflation).