Ron Paul: We Should File Bankruptcy

[BDBoop]

In which court would we declare bankruptcy?

It was in one of the articles I read. I'll need coffee before I can dig it up.

 

[repeter]

It has been some time since I read it but I read a comprehensive article about the benefits of the US filing bankruptcy. While it has it negative the article made it not sound as crazy as it may seem.

In short,
if we filed we could eliminate all debt ( or simply refuse to make payment ). This is debt that we will never pay off anyway so its not like they are losing as much as we owe due to the bankruptcy, there never gonna get it all not matter what. In turn we go back to a gold backed standard and reissue new currency. This would help ensure the value of our dollar in potential future trade agreements.

We would also lose much of our imports do to the bankruptcy. This while bad short term could actually have a very positive outcome. We would once again manufacture most of our goods and not be losing hundreds of billions a year in trade deficits.

It would also help to insure that countries would be hesitant to loan us money. This would help keep the government spending in check. No more blank check for government spending.

While Im sure it would be bad short term I could see it having the potential to benefit us in the long run. We have been living beyond our means for decades. Its about time we correct this.

In a perfect world, what you outlined would be achievable, on a political and economic scale. But in the reality we inhabit, if we defaulted, every market in the world crashes, most economies will collapse, as will the dollar for sure, and the world will descend into what will make the Great Depression look like a Golden Age. Politicians aren't going to do what you said, because thats a long-term policy, they have to think in the short term so they get re-elected. Of course, if you want to start the world over, I guess, defaulting is a good idea. After that, government wouldn't mean ****, and we'd probably wait a few years until corporations officially took their place.

 

[jamesrage]

My first post and I am about to earn alot of hate haha.
Here goes: Ron Paul is my presidential candidate of choice.
...there I said it.
As far as the bankruptcy goes, can anyone honestly see this heading anywhere else? This country has defaulted 3 times in history:
-the civil war
-the 1930's
-1972 (I think it was 2...maybe 3, I'd have to look it up.)
We are in over our heads and if we don't do something we will be up a creek. Stopping spending on crap will help, yes, but i can't see it solving the problem entirely.

SO in other words that is three times we have not learned our lesson and the government still continues to spend outside its means. Why would defaulting a fourth time be a good idea. This is why the government spends money like a spoiled rich child or some inbred Eurotrash Royal familiy wasting other people's money.

 

[Shayah]

All in favor?

Ron Paul: U.S. should declare 'bankruptcy' - Jun. 28, 2011

Ron Paul is crazy. The reverberations from such a declaration would rock the globe like an economic tsunami

 

[BmanMcfly]

NO. Because we will be right back where we started, plus in the future there might be some emergency and we will need to borrow money. We need to make some serious cuts to our spending and pay our debts. If you lost your job you would not continue to have Cable or Satalite TV with two or three hundred channels, you do not continue to buy name brand products, you do not continue to eat out in fancy restaurants, you would not continue to buy expensive coffee at Starbucks or Java Daves when you can buy a can of Foldgers and make it at home much cheaper, and you would do anything else to cut spending or reduce costs. Yet somehow the government thinks it is acceptable to do this.

I disagree with you here... Now what you are sayin WOULD be true IF the problem was simply one of the debts being somewhat out of control... Like someone falling behind on their credit cards.

Instead, we're at the point where even the interest on debts is getting beyond the productive capacity to pay off... Which is more like someone who has taken on so much debt that even paying only the interest would still run out of money before paying off interest.

At this point it's not much longer before the creditors will figure out that you are juggling debts between so many cards that the interest exceeds your income.

Bankruptcy, even with the negatives is really the only sane option.

 

[OhIsee.Then]

Bankruptcy: So how is one handled? 1st lawyers are involved. Oh boy the conservatives should like this part. 2nd everyone loses control of their assets to the lawyers. Chinese lawyers will have the most fun. 3rd since our assets are worth more than our debt everyone else (esp. the lawyers) but us are going to come out ahead. 4th the US dollar becomes a currency based on a bankrupt state, i.e. worth what the lawyers decide it is. 5th it gonna take at least 3 years to settle things. ………

 

[jamesrage]

I disagree with you here... Now what you are sayin WOULD be true IF the problem was simply one of the debts being somewhat out of control... Like someone falling behind on their credit cards.

Instead, we're at the point where even the interest on debts is getting beyond the productive capacity to pay off... Which is more like someone who has taken on so much debt that even paying only the interest would still run out of money before paying off interest.

At this point it's not much longer before the creditors will figure out that you are juggling debts between so many cards that the interest exceeds your income.

Bankruptcy, even with the negatives is really the only sane option.

One of the reasons the US is in the hole it is in now is because of frivolous spending. This frivolous spending will never stop if we just file bankruptcy. We need to make serious cuts and make due with less. That means no NASA, no military installations all over the world, that means no grants for useless studies, no foreign aid, no overlapping agencies, no culture preservation in other countries. The US wastes a lot of money on **** it has no business spending money on. From what I understand this would not be the 1st,2nd or even 3rd time we defaulted and eventually countries are not going to be dumb enough to lend us money. Being in others debt makes you at their mercy, this is a threat to our sovereignty and security.

Ron Paul may have some good ideas but filing bankruptcy is not a good idea.

 

[Ikari]

All in favor?

Ron Paul: U.S. should declare 'bankruptcy' - Jun. 28, 2011

Naw, there's no need to declare bankruptcy