When will the recession end ? Part 32 Could the US go broke and default on its debt?

Could America default on its debts?
It's far from likely that America would stiff her creditors -- but it's no longer altogether unthinkable, writes Robert J. Samuelson in the Washington Post. If lenders lose confidence in U.S. bonds, Washington might have to choose between deep spending cuts, major tax increases or defaulting on her outstanding debts -- and simply going broke might be the most attractive of the three options. "The odds may be against ... that fate, but even the remote possibility underlines the precariousness and the novelty of the present situation," Samuelson notes. The Washington Post (11/2)

 http://www.washingtonpost.com/wp-dyn/content/article/2009/11/01/AR2009110101704.html

 

Walter Derzko