Thread: Greece? Dubai? U.S. Bankruptcy Will Be the Biggest of All!

Greece? Dubai? U.S. Bankruptcy Will Be the Biggest of All!

Thursday, December 10, 2009 1:15 PM

By: David Skarica

Right now we are hearing a lot of about the potential problems in Dubai and the debt problems in Greece.

The debt of Dubai World is estimated in the $60 billion to $80 billion range. The Greek national debt is about $500 billion! Yet that is smaller than the Wall Street bailout and about a half of the size of the U.S. bailout and stimulus combined.

These issues, though, are small potatoes. Sure, if they happen it could lead to a short-term flight to the dollar and short-term deflationary effects.

The U.S. deficit for 2009 alone was $1.4 trillion. This is twice the size of the total Greek debt and that of Dubai World combined! When it is all said and done, over the next 10 years the U.S. government debt will run to nearly $20 trillion and be well over 100 percent of GDP. Not to mention the debts of dozens of broke cities and states.

The U.S. is in the beneficial position of being the world’s reserve currency. So, unlike Argentina, it will not have to default but rather will print the debt away. The U.S. dollar will be massively devalued and the U.S. will go into hyperinflation.

Let the press talk about Spain, Dubai World, and Greece. All the while the 800-pound gorilla in the room is nearing bankruptcy itself. The U.S. will go into huge inflation as it goes bankrupt. This is the bankruptcy we should be really worried about.

http://moneynews.newsmax.com/david_skar ... 97169.html

It's already happenned here. It's just being pushed back by the influx of more paper into the economy in the form of stimulis checks and bailouts. But it will get to a point in the near future where no matter how much of a transfusion the economy is given, it isn't gonna help. People in high places have played craps with our wealth and when they did good they shared the profits, and when they did bad, we got saddled with it just like we are now. Best thing to do, is let these empires fall, and let a fresh upstart come along and do a better job until he / she fails. But quit propping this thing up or else when it does go, it's gonna be like Hoover Dam bursting.