Who will File Bankruptcy against US Government?

[Glenn Black]

http://www.fms.treas.gov/fr/

I understand that the debt of the US government now exceeds the value of all its assets. To continue to trade when an organization has negative net worth is an act of bankruptcy. I don't believe that the US Government is excluded from the law of the land.

Therefore, anyone who is affected by the allegedly illegal activities of a wayward bankrupt can file a petition before the court to have them declared bankrupt and the appointment of a receiver.

Do we have anybody with cannonball sized brass balls who is willing to give this a go? Perhaps this is a quick & easy way to bring this Federal Reserve, bankster, & unending debt against all our children & grandchildren to an abrupt end.

All of the proofs filed on this motion will be extremely interesting.

[jimmygu3]

Re: Who will File Bankruptcy against US Government?

http://www.fms.treas.gov/fr/

I understand that the debt of the US government now exceeds the value of all its assets. To continue to trade when an organization has negative net worth is an act of bankruptcy. I don't believe that the US Government is excluded from the law of the land.

Therefore, anyone who is affected by the allegedly illegal activities of a wayward bankrupt can file a petition before the court to have them declared bankrupt and the appointment of a receiver.

Do we have anybody with cannonball sized brass balls who is willing to give this a go? Perhaps this is a quick & easy way to bring this Federal Reserve, bankster, & unending debt against all our children & grandchildren to an abrupt end.

All of the proofs filed on this motion will be extremely interesting.

The US government is able to avoid default because the debt is denominated in its own currency. Imagine a stack of quadrillion-dollar bills sitting in a vault at Fort Knox. Now that's what I call assets! Not bankrupt by a longshot. A combination of taxation, new debt issuance and printing will do the trick for a good while longer.

-Jimmy

[tsetsefly]

Re: Who will File Bankruptcy against US Government?

No need to file for bankruptcy when you can print your way out of debt, however if there is someone with the balls to do it, it's ron paul, imo...

[Glenn Black]

Re: Who will File Bankruptcy against US Government?

If I don't understand, the Federal Government can only issue money in silver & gold. It is the Federal Reserve who can print cash. US Government can issue Treasury Bonds & receive cash for them from the Federal Reserve & others.

However, the more bonds they issue, the more in debt they become, making their situation worse & worse.

Once someones debts exceed their assets, they are bankrupt.

Who will file the papers with the court?

[charliebrown]

Re: Who will File Bankruptcy against US Government?

I'm not an accountant but I don't think debt larger than assests technically defines bankruptcy. It's ability to service outstanding debt.
A kid out of school, with no assets can get an auto loan if they have a job.

Following the same logic, the day of reckoning is when the U.S. gvt can no longer service its debt through revenue collection. (taxation et. al.)
Some will argue that it can print the money, but that only works until the delusion is broken that this debt will be repaid with no inflated dollars.
If the kid above goes into the car dealership with a bunch of 20's he printed up on his laser printer the money won't be accepted.
No economic difference between that and the the fed printing it, only a legal difference.

I think we are in the danger zone now.

Let's see, 14T of debt = 14,000,000 M debt, then divide by 130 M workers = 140 K per worker. (wage & employment numbers from BLS)
If a worker earns $700 per week, = 35K per year. LTI=4.0 oops, that doesn't work. Would you loan someone making 35K 140K?? I don't think a bank would. I would'nt borrow this kind of money. Talk about a debt serf.

We are toast. Thanks, I didn't know we were this far gone.
Anyone want to tell me my math is wrong? Or I forgot about something.
Savings (assets) will have to be inflated away, taxed or stolen its the only way.

Unless of course the Mr. Fusion cold-fusion energy machine goes no sale at wal-mart next year for 19.99.

[Glenn Black]

Re: Who will File Bankruptcy against US Government?

Nice back-of-the-envelope calculations.

I am am no expert, but I believe that debts have to exceed assets and the person continues to trade, or they are generally unable to pay their debts as they come due. Either way, you're bankrupt.

So, again, is anybody willing to file the court papers? I believe the one who files is first in line for recouping their filing costs from the division of assets amongst creditors.

I can hear it now:

"Yes, folks, ask for Obama when you come down for our bankruptcy sale. Everything has to go.

We've got bridges for sale at deep discount prices...



We've got an excellent selection of slightly used missiles (both ours and the competitor's samples, scratch & dent sale) ...

.

Even Mt. Rushmore is for sale



but don't wait too long, as the best parts will soon be gone...

No reasonable offer refused. My name is Obama, and I'm ready to deal!

[ThePythonicCow]

Re: Who will File Bankruptcy against US Government?

I am am no expert, but I believe that debts have to exceed assets and the person continues to trade, or they are generally unable to pay their debts as they come due. Either way, you're bankrupt.

Discounted cash flows (future income) count as assets in bankruptcy (and divorce) court. Otherwise almost everyone taking out student loans would be bankrupt

If you can service the debt from present assets or future income, you aren't bankrupt.

[Glenn Black]

Re: Who will File Bankruptcy against US Government?

Discounted cash flows (future income) count as assets in bankruptcy (and divorce) court. Otherwise almost everyone taking out student loans would be bankrupt

If you can service the debt from present assets or future income, you aren't bankrupt.

Oh, boy. That's re-assuring. Guess who gets that bill. Take it out of everybody's hide

[Glenn Black]

Re: Who will File Bankruptcy against US Government?

http://eh.net/encyclopedia/article/h...kruptcy.law.us



Take a look at the bankruptcy rate in USA since 1899 to 1997. Not the huge increase in bankruptcies during the Great Depression 1930's (NOT!). Why didn't the government see this trend & do something about this far sooner. It was the all-time high in personal bankruptcies in 2001 that alerted me to this huge potential. That's when I first researched the buying of gold.

I think US came fully off gold standard in the 70's. Note any sudden jump thereafter? I wonder if that is just coincidence? What do you think?

When will we learn.

[charliebrown]

Re: Who will File Bankruptcy against US Government?

oh you're right cow. If glenn's asseartion that our debts are about equal to assets, we could theoretically sell them all get our balance sheet down to zero, then how much can we borrow? Say another 7T - 14T based upon earning power, GDP etc. Hmm not that many years away is it? At a deficit of 1.3T per year. ohh and I forgot state, local and household debt.

Were still toast.

[bcassill]

Re: Who will File Bankruptcy against US Government?

If I don't understand, the Federal Government can only issue money in silver & gold. It is the Federal Reserve who can print cash. US Government can issue Treasury Bonds & receive cash for them from the Federal Reserve & others.

However, the more bonds they issue, the more in debt they become, making their situation worse & worse.

Once someones debts exceed their assets, they are bankrupt.

Who will file the papers with the court?

Technically, the Fed can monetize the debt very easily and have been doing exactly that for about the last year. Essentially, the Treasury issues "debt" in the form of Treasury notes/bills. GS or some other intermediary buys them up. The Fed then prints the necessary funds to buy the notes/bills from GS or other market facilitators. Voila. The government now owns its own debt. All the interest payments on the debt to the Fed are simply credited back to the Treasury since any money earned by the Fed has to be turned back over to the U.S. government. It's a convoluted system, but this allows Bernanke to sit in front of Congress and pretend that he is not monetizing the debt. They can claim that they are just buying securities on the "open market" through their facilitators.

Kind of stupid, really.:rolleyes:

[ThePythonicCow]

Re: Who will File Bankruptcy against US Government?

Were still toast.

Oh yes, right you are.

The question in my mind is: who's operating the toaster and expecting to eat this toast? Well, "who" might be a bit of a misdirection. "What forces" might be a more useful phrasing.

[Glenn Black]

Re: Who will File Bankruptcy against US Government?

Check the link in the first posting. After reading the report, I must admit, I was impressed with Treasury Dept. candor. In the world of bafflegab and bureaucratic stonewalling, this report uses terms like "crisis", and "current situation and course unsustainable"

To be that clear about how bad it is in a government report is a sure sign that they must be really quaking in their boots.