Officially the US is not bankrupt already, but there is an ongoing debate whether we are about to witness this event in the near future. Many say that America is on the verge of insolvency while others cannot see this happening at least in the next few years. However, there are many signs that point towards that direction.
Analyzing the term of bankruptcy one could see that it happens mostly in the case of individuals or companies. Unfortunately, history has shown us many times that even states can run out of money and go into the impossibility of paying back the creditors. The poor countries as Zimbabwe are very good examples but this phenomenon has affected powerful states too especially after serious events at the international level. An example of such an event is the Second World War that influenced the global economy and changed its path for good. Even though these examples are very relevant, some say that it is impossible for a country to be bankrupt. In a way they make a point but history cannot be changed.
One of the most important things that led everybody to believe that the US is on the verge of bankruptcy is the downgrade from AAA to AA+. Since Standard & Poor's is a very serious rating agency many took for good their downgrade. However some international forums and politicians all over the world expressed their disagreement with this downgrade and said that Standard & Poor's opinion in this matter is overrated. But the disagreement came too late since the downgrade led to many speculations about the possible bankruptcy.
If we were to compare the situation of Greece and the US one could see major differences that influence a possible bankruptcy. Even though both have major debts, the financial potential of the US surpasses by far that of Greece. The latter bases most of its income on the tourism industry while America has many more possibilities since many industries are still very profitable.
A second criterion that distinguishes the two countries is that of the central gold deposits. The 2010 statistics revealed that the US federal gold deposit is on the second place in the world after the Eurozone's, with 8,133.5 tones of gold, while Greece is on the 32'nd position with only 111.7 tones. Why are the national reserves so important? Simply because they are a guarantee for the loans and establish just how much can a country be credited with. All these make the US a strong name in the financial world turning it into an example to other countries such as China which decided to buy gold to gain more power. In the end, with a little bit of help from the wise people from the American administration, the US can fully recover leaving the bankruptcy speculations behind.
Analyzing the term of bankruptcy one could see that it happens mostly in the case of individuals or companies. Unfortunately, history has shown us many times that even states can run out of money and go into the impossibility of paying back the creditors. The poor countries as Zimbabwe are very good examples but this phenomenon has affected powerful states too especially after serious events at the international level. An example of such an event is the Second World War that influenced the global economy and changed its path for good. Even though these examples are very relevant, some say that it is impossible for a country to be bankrupt. In a way they make a point but history cannot be changed.
One of the most important things that led everybody to believe that the US is on the verge of bankruptcy is the downgrade from AAA to AA+. Since Standard & Poor's is a very serious rating agency many took for good their downgrade. However some international forums and politicians all over the world expressed their disagreement with this downgrade and said that Standard & Poor's opinion in this matter is overrated. But the disagreement came too late since the downgrade led to many speculations about the possible bankruptcy.
If we were to compare the situation of Greece and the US one could see major differences that influence a possible bankruptcy. Even though both have major debts, the financial potential of the US surpasses by far that of Greece. The latter bases most of its income on the tourism industry while America has many more possibilities since many industries are still very profitable.
A second criterion that distinguishes the two countries is that of the central gold deposits. The 2010 statistics revealed that the US federal gold deposit is on the second place in the world after the Eurozone's, with 8,133.5 tones of gold, while Greece is on the 32'nd position with only 111.7 tones. Why are the national reserves so important? Simply because they are a guarantee for the loans and establish just how much can a country be credited with. All these make the US a strong name in the financial world turning it into an example to other countries such as China which decided to buy gold to gain more power. In the end, with a little bit of help from the wise people from the American administration, the US can fully recover leaving the bankruptcy speculations behind.
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