US Debt including unfunded obligations is around $100 trillion
http://www.usdebtclock.org/
http://brillig.com/debt_clock/faq.html
The Guidotti-Greenspan rule states that reserves should equal short-term external debt (one-year or less maturity)for a country to avoid going bankrupt.
The USdoes not have reserves to pay the financing costs for the enxt 12 months.
The fact of the matter is than anybody who is overleveraged be it an individual, a company or a country (like what happened in Dubai) is at high risk for bankruptcy.
The US is on the tip of a massive collapse. Great fortunes can be made by shorting the DOW/S&P. It's just a matter of time before this situation pans out.
2 comments:
Interesting Chart however misleading. You have to deflate the chart with the inflation rate and put it into context to the total economy e.g. % of GDP and you will realize that the debt level hasn't changed that dramatically. There is a substantial increase over the last 2 years related to the financial crisis, however I am very confident this country will not go bankrupt.
Cheers,
Rene Hartner
If all these debt is denominated in USD, then matching reserves could be created by running the printing press - so as long as USD is the reserve currency, they are safe.
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