My grasp of economics is old-fashioned to the point of primitive, but it seems to me we already ARE bankrupt. At this point no one will say so aloud, but bankruptcy is when you don't have enough assets to balance liabilities. That's why it's called a "balance sheet." So far Asian and Mid-East investors haven't called in their chits, but if they did we would be in very deep doo-doo. If Americans don't stop using credit without saving some of their income to offset individual, personal indebtedness the matter will only get worse. I'm not hearing anyone urging a saving habit. All I hear are calls for more extended credit.
I heard last week that in China, which was on a cash economy until recent years, ninety percent of autos are purchased with cash. And loans which we would call "mortgages" expect already to have fifty percent of the purchase price as a down payment. If that is true, America is only being shielded from bankruptcy by Chinese cultural habits of thrift.
We have just watched the biggest bust-out in the history of the world and nobody has been arrested apart from the red herring scapegoat Bernie Madoff ... and we used to think Cosa Nostra was serious organised crime. At least they only stole about ten percent of the nation's wealth and only killed each other in the business of crime. The governments of the West have just pissed not only the wealth but also the civilisation down the drain and by and large there is no civil disturbance. We are in the process of being demographically annilihated and there is no civil disturbance. Covert modified Marxism is now taking control in the White House and No 10 Downing Street and there is no civil disturbance. The Iranian Mullahs are about to go nuclear and there is no civil disturbance. Where did all the good men go?