Europe is going Bankrupt

[cinderella_948]

Scary thoughts !!!!. China the next power house?. At the rate the USA is spending money they can be the next bankrupt country.

http://www.dw-world.de/dw/article/0,,5515912,00.html

As the situation in Greece continues to intensify, fears are increasing that the debt crisis will spread throughout Europe. DW takes a look at some of the European bankruptcy candidates in line behind Athens.

In financial circles, they are referred to as PIGS - Portugal, Ireland, Greece, and Spain - and sometimes even PIIGS, if you include Italy as one of the European countries at risk of going bankrupt in the near future.

The common denominator for these eurozone countries is mounting budget deficit coupled with weak economic growth. In Ireland and Spain, the financial crisis has led to the collapse of the construction and real estate industries.

 

[Persephone]

Why we are still stuck in this stupid recession.

 

[ben lam]

According to Ron Paul, a member of the house banking committee, we owe China about 2 & 1/2 trillion American dollars.

China gets American dollars when they sell us stuff made in China. Instead of sitting on the dollars they buy American interest bearing Treasury Bills & Treasury Bonds, which would have different maturity dates. These Gvt. issues can also be rolled over when the maturity date arrives.

It's a distinct possibility that it may never be paid off or paid back because the numbers are so high.
These American dollar debt obligations can be sold or traded by China at any time provided a buyer is found.

If the Fed is ordered by Congress to buy them back, it would probably be at a very deeply discounted price, which would show the worlds bankers exactly how unsound dollars have become.
If the Fed buys huge amounts of Treasury debt, it can be assumed the national debt {about 9 trillion dollars} would be owed to the Fed, which apparently is owned by the wealthiest bankers in the world, not the American people.

Now do you see why Ron Paul wants to abolish the Fed?