Tuesday, January 4, 2011
America's Bankruptcy Crisis
According to The Wall Street Journal, the number of Americans forced into receivership last year rose nine percent. The number of more than one and one half million was a recent record as tabulated since the US bankruptcy law was reformed in 2005. The United States of America is rapidly becoming a bankrupt nation populated by a bankrupt citizenry. Declaring bankruptcy was once considered a badge of shame but now is becoming so alarmingly common and sadly necessary for many families that a stigma is no longer attached. But what does it do to a national psyche and an ever more beleaguered one at that as the country follows a self-destructive free spending path? No nation has ever survived such a hemorrhage with the greenback, of late the reserve currency of the world, becoming worth less on the path to a hyperinflation that could render it essentially worthless. You may soon find America and Zimbabwe with a par value on fiat money. "Sound as a dollar" will soon be heard as damned with faint praise indeed.