Sunday, July 30, 2006

US 'could be going bankrupt'

The United States is heading for bankruptcy, according to an extraordinary paper published by one of the key members of the country's central bank.

A ballooning budget deficit and a pensions and welfare timebomb could send the economic superpower into insolvency, according to research by Professor Laurence Kotlikoff for the Federal Reserve Bank of St Louis, a leading constituent of the US Federal Reserve.

Prof Kotlikoff said that, by some measures, the US is already bankrupt. "To paraphrase the Oxford English Dictionary, is the United States at the end of its resources, exhausted, stripped bare, destitute, bereft, wanting in property, or wrecked in consequence of failure to pay its creditors," he asked.

Kotlikoff's homepage at Boston University

Is the United States Bankrupt? by Laurence J. Kotlikoff

Commentary on Kotlikoff's paper by Anjan Thakor

Now, with all of this said, please read the next post about the trillions due the US Treasury, and the BushCo attempt to prevent it from going through.


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