But individual foreigners would not be screwed, only sovereigns. I see.

Agreed, but that still doesn't lessen China's need for farmland or food (they already lease large amounts if US farmland) and oil. Russia would certainly like to have more oil and natural resources.

I'm not wishing for trouble, but the recent aggressive posturing by China and Russia and O's willingness to tuck our tail between our legs while he seeks to disarms us (and a variety of other destabilizing things), does not inspire confidence in a peaceful resolution to our financial situation should any degree of bankruptcy be taken.

I think if you look closely at both Russia and China, you'll find that they're both like western movie sets. All facades and nothing behind them. Russia has only just started paying its soldiers and China has mega millionaires but no real Middle Class. China has the best chance to take over leadership through the sheer numbers of its population, but I doubt if they could sustain prosperity unless they evolve into greater capitalism. I have the advantage of prediction because I won't be around to see the result.

I want to say you're a dreamer, but then, I learned about quantum physics, and now I know anything can happen.

Recreating with my family on Maui and blogging about subjects such as fiscal policy seems a bit counterproductive but it's fun nonetheless. In lieu of an America BK, try this idea on for size and please feel free to point out where I've gone a stray. What if Trump were elected and the first thing he waved his magic wand at was the elimination of The Federal Reserve and a quantum adjustment to fractional reserve banking in that all banks would need to maintain 50% or greater in reserves ILO 10% and Fed borrowing. AND we went back to a productive standard like gold or (you name the productive unit of measure). In other words, banks can only offer credit up to about half of their interest bearing "deposits" (in all other transactions outside of banking referred to as "loans") and no money is produced until (name your productive unit of measure...like gold) and/or until per capita production increases (new workers minus retirees and dead people). NOW THE WILD CARD! Since money has already been manipulated by the trillions, immediately raise the minimum wage to (you name the amount...my idea is probably $25-$50 per hour). This idea is an anathema to conservatives but the one and only thing Bean-Head Bernie has correct in my opinion. This idea will devalue the dollar and force the trillions of dollars in "quantitative easing" out of the hands of the top 1/10th of 1% and back towards Main Street America. It seems to be the best of all the bad choices we still have in our quiver short of an apocalyptic event. It'll force us to be a productive nation again and severely narrow the gap between the haves and have-nots that currently exists today.....hopefully for generations to come. Where are my blind spots?

Unfortunately, I understand bankruptcy too well. Yes, there are provisions for debt restructuring. You may be right about other nations falling in line. I'm just skeptical that the world nations want the USA as a factor anymore. China and Russia certainly look like they want to post as top-dog and each has eagerly studied their needs and how our resources could fill them (food, oil, etc). Only when we kick that can will be know whats going to happen.

http://www.breitbart.com/milo/2016/05...
and follow-up
http://www.breitbart.com/tech/2016/05...

Absolutely right. The US is already bankrupt from the policies of the PREVIOUS administrations and the money printing of the federal reserve. Trump is saying we need to acknowledge whats been done by our irresponsible politicians. He isnt suggesting we keep doing these stupid things at all. People dont seem to want to see whats happened already and hide their heads in the sand.

Not recently...yes in the past they were valuable...I certainly hope they can pull it out.

The government has ALREADY inflated, debalued, and repudiated. Its been done and cant be undone. MIght as well realize we as a country ARE bankrupt and deal with it. Trump is just saying whats true out there. Hillary hides it.

And what do you think inflation is????? Everyone is taking a haircut with inflation and federal reserve money printing- but its hidden and manipulative and downright EVIL.

I dont agree with deficit spending and money printing at all. BUT, I would appreciate the politicians telling me right up front what they are doing. I would rather get the TRUTH than the pack of lies we get now.

In 2008, there were a LOT of bankruptcies and "haircuts" taken by bondholders and stockholders. It happens when things get out of hand, whether governnmental or private.

Our government IS bankrupt right now. Our money is essentially worthless when all the debts that the government has incurred are paid. The national debt will NEVER be paid down through increased taxation. It will hang out there as a sword waiting to fall on all of us.

The reason for bankruptcy laws is to accept the obvious insolvency of the person or business OR government, and find a way to quickly move on to rebuild. Without bankruptcy laws of some sort, the debt just hangs around forever and rebuilding doesnt occur.

I would rather Trump tell me we are bankrupt as a country and we find a way to move on and not make the same mistakes again. As opposed to Hillary just manipulating us into thinking we arent bankrupt and just need to print more money and stretch the rubber band another day. I am so DONE with the lying, manipulations, and kicking the can down the road of the establishment. At least Trump is bringing out the debate for all to see. Thats NOT bad.

Great idea to BK the government. The losers are the suckers who thought government was safe and it was patriotic to buy bonds. I suppose it could be a Chapter 9, but a Chapter 7 would be best and then start off fresh.

Breitbart is the only major news source opposing the evil "identity politics/social justice" movement. We should all get on board with them.

I've been watching Greece "renegotiate" their debt for the past two years. It's amusing, because you can tell where they're going to be when it ends.

See my post. There is no need to worry about the one's holding the USA debts.

This is not a surprise. There's no way any country ever could possibly pay off trillions of dollars in debt, except by printing money like Zimbabwe.

Any politician who says there's another option is either deluding himself, or trying to delude the rest of us.

Jim Cramer recommends that the Treasury issue 100 year bonds in order to lock in debt at low rates. When inflation returns to normal levels, it would reduce the national debt. However, it wouldn't solve the basic problem of runaway government spending.

with $21 trillion in current debt...and over $220 in entitlement debt, either you negotiate it now on more favorable terms or wait till later and no one wants to talk to you and society collapses or you get less favorable terms...he is the only one being realistic about it...the politicans will not touch it or the entitlements...either we go over the cliff or pave a road down the mountain...

Not the Treasury bills to the Federal Reserve or the people, only the ones to the foreign governments.

I will be brief. Kudos, finally someone with enough sense to understand the complexity of America's dilemma, again thanks.

AJ:
You are wrong. First of all, a bankruptcy is not a default. It can be a restructuring that will allow a more responsible leadership to pay off the debt in a way that allows for no increase in debt. In the case of the USA it would be complicated but could be done. In the hands of strong leadership, it could be a weapon that could humble those holding the debt, and not the other way around. Trump is not nuts. I can also tell that not too many in the Gulch have been deeply involved in the machinations of business. In the hands of a competent leader, debt restructure, can allow for progress and a healthy return to proper budgeting. This cannot be true of countries such as Greece, but America? They will all fall in line in the hopes of future wealth if they see the management of the world's powerhouse on the right track. Even China. And when I say powerhouse, I don't only mean economic, but also military. With the exception of Islam which is insane, the nations will go along and everyone will live happily ever after. (Hey, it's possible.)

The USA is never going to be able to pay off its debts. Those entities that hold those debts are completely aware of this. They also have computers and adding machines. Ask yourself, why do they allow America to owe them such vast amounts? What is it that they want? The answer is power over the greatest wealth producing competitor on the planet. That power will not only allow them to control American production, but will also eliminate the competition. You can already see it happening as Trump has pointed out in his balance of trade rants. When credit is used, there is not just one responsibility, but two. The first and the one most persons only look at is the obligation to repay. However, the second is the obligation of the creditor to make a profitable loan. Profitable can be defined in a number of ways. Not only in repayment but in other considerations such as future business and partial ownership. Defaulting on a debt is always a last resort, but bankruptcy has certain benefits to both the debtor and those holding the debt. It can hold off the partial or complete takeover of the debtor, and it can allow the debtor to continue to exist and in the long run become more profitable with new management. My point is that all this is known to those holding debts, so bankruptcy may not be the catastrophe that many think it is.

He's going to "renegotiate" the amount owed to the owners of Treasury Bills, is that what you are saying? Wouldn't that mean that all the holders of that debt, foreign governments, pension plans, individual investors including millions upon millions of retired folks, would all get screwed? How would that work exactly?

DT's self interest is a double edged sword. I agree he will fight tooth and nail to protect his holdings which could have some value to the rest of us.

breibart is now controlled or owned by trump or the left...but we have observed their tainted, false and ludicrous commentary lately...another news source gone south...