Is the U.S. really “on the Brink of Collapse?”

In: Special Projects

22 Dec 2010

Whenever the health of the U.S. economy is debated these days, one of the topics that consistently surfaces is the size of the U.S. public debt.  As a special topic of exploration, we have chosen to offer a series of posts where we aim to clarify and answer questions, doubts, queries, and concerns regarding the U.S. public debt.

Here are some links on the issue, ranging from those that (irresponsibly) spread the debt fears and those that take care to explain the true nature of public debt.

Bloomberg has published an alarmed comment by Laurence Kotlikoff.
This is based on a highly questionable methodology as this paper shows.

A Chinese rating agency must have read Kotlikoff and thus have downgraded U.S. debt, and former Fed Chairman Alan Greenspan seems to confirm these fears.

Many have tried to argue the simple truth of monetary accounting.
Warren Mosler tried it here
Jamie Galbraith tried it here
Randy Wray tried it here
Bill Mitchell tried it here
Marshall Auerback tried it here
Robert Parentau tried it here
Ellen Brown tried it here

And this is a simple Mecpoc answer in ten bullets (CLICK HERE).

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