Will the us file for bankruptcy?
Posted on 16 December 2009 by Debt Helper
No.
In the first place, for countries, it is usually called default. Bankruptcies are for companies and people. A default would occur if the US announced that it was going to stop paying interest and/or refuse to pay the principle back on some or all of its debt obligations (Treasury Bonds).
In the second place, such an event is not possible in the foreseeable future. It would mean the end of the world as we know it. The entire world economy depends upon the free flow of capital in and out of our currency and our bonds.Bankruptcy is a legal process where the government releases you from legal liability for debts. There CANNOT be an equivalent process for sovereign nations. What they do is simply DEFAULT. This normally results in the fall of the government.
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