Monday, August 8, 2011

Jim Rogers: Don't See How US Can Ever Pay Off Debts

We can't. First of all, we haven't stopped borrowing. Duh. Second, the amount of debt we've already rung up is astronomical. Your mind can't even comprehend how large $17 trillion dollars is. And finally, the actual debt doesn't take into account our unfunded liabilities - things we haven't paid for yet but are obligated to, like Social Security when the Baby Boomers retire - which jack the debt up many tens of trillions of dollars more. Anyone but government would be forced to include these in their debt analyses. If the people were ever to come into their power, and grow a pair, they would repudiate this debt, seeing as they didn't spend the money and received nothing of value for it.

    CNBC -

    The U.S. doesn't deserve a AA-plus credit rating, much less triple-A, commodity bull and noted investor Jim Rogers told CNBC on Monday.

    Rogers said the country was unlikely to be able to pay off its debt and Standard and Poor's rating cut had come too late and should have happened long ago.

    "It seems to me it's physically, humanly impossible for the U.S. to ever pay off its debt," Rogers said. "They can roll it over and continue to play the charade, but the U.S. is bankrupt."

Read all of it.