Is America Too Big to Fail?

Would this country get a bailout the same way the banks did? Its been said if the banks were to fail In 2008 the country would fail because the consequences would have been inconceivable to the average person. If America fails, being the leader in the global economy we live in today, would it mean the failing of multiples nations? Would it set off a world war once other countries had to face the fact that debts would not and could not be paid? What happens to the 300 million people we have here on day two of “failure”? Would it just turn into Anarchy overnight? I just got to thinking one day and asked myself if this talk about a financial crisis is just smoke in mirrors? I know throughout history great nations have rose and fallen, but there has never been time where nations are as dependent on each other as they are today. So my questions are can America Fail? Will the world let America Fail? What happens to the 300 million citizens? What happens to other nations if America Fails? Would it be a slow and painful process that would happen over years and we never actually address or acknowledge it? (maybe what’s happening now). Or will the citizens wake up one morning and the news headline will be “America defaults on debts” and all hell breaks loose on that day?

Thoughts?

Maybe America will default on debts and all hell won’t break loose.

There is that too. Its just very strange that the media will talk about something as serious as a nationwide financial crisis, and then follow that story by a kitten and puppy segment. I don’t know whether its worth being taken seriously or not, its all very surreal.

America is too big for its britches, to be sure, but i don’t think it’s too big to fail - though it sort of depends on what you mean by “fail”. Bankruptcy is a definite possibility, yeah, but it doesn’t have to mean world war or global economic catastrophe. There are enough other major economic engines in the world to keep things working if and when America’s economy tanks. In any case, it’s obvious America is not going to remain the top economic superpower forever, and i think the rest of the world is becoming increasingly well prepared for that eventuality. i second Flannel’s response. It will fuck up a lot of things if the US defaults, but it won’t necessarily cause armageddon.

Hi, iWonder–Welcome!

The US is a part of the world market and the world market–except for China–is going through the repercussions of the so-called ‘collapse’ of Wall Street and the western world’s banking systems which rely heavily on Wall Street. As I understand it, there are also certain assurances put into place following the Great Depression of the 1930s which supposedly keep the US from going through another such depression. There’s only been a name change, as far as I’m concerned, from Great Depression to Great Recession. Whatever it’s called, it’s happening throughout the Western World and other nations.

The US takes itself too seriously, especially when thinking of itself as the World Savior–either economically or militarily. You might say that psychologically, the US really isn’t prepared to take its place in the world. We’re still under the spell of Manifest Destiny–a name invented by a journalist back in the mid-19th century to ‘justify’ US expansion westward to the Pacific.

We’re only ‘too big to fail’ if we believe ourselves to be. What we, as a country, can do to keep the country from failure, economically, militarily, or otherwise, is something we’ve never faced.

Why do you think they’ve been sending economic hitmen all over the world? And entangling in foreign trade? Encouraging people to buy our Debt? It’s to make even our rivals dependant on our existance.

This isn’t fullproof though, and only works because of the Nuclear peace. It’s a real mess created with good intentions.

The way Capitalism is set up and maintained has a built in structural fool proof set of safeguard which, at least in the short term, (and I mean short-term in the durations of decades, if not in generations) would prevent any possible scenario as described above, for the following reasons:

 Commodity exchange is such, that the buyers are never known because they could be anyone.  Japanese corporations may be owned by conglomerates, institutions, private holders, or government secured loans or bonds.  The majority holders it is true, exercise the power of majority, however, whatever happens, all investors are structurally built in, to exercise the periodic restraint by the majority.

 So inter nationalization of Capital implies the same dependency situation to arise as does in China's holding the majority debt of US treasury bonds.

China can not let the US tank, because it's losses would shoot itself in the foot.  It's self inflicted damage in this scenario, would then create a domino effect of dis investment, spiraling every capitalized entity or nation into an economic depression.  

 With structural investment, all around, with close watch on the debt/capital ratio, large amounts of capital can be assigned to fledgling economies, Greece being an example.  

  With Marxism seen as basically irrelevant by now, it's dogma is still applicable to ideas such as capping capital holding and accumulation, diminishing returns, however these ideas, short term may not come into play, until the economic expansions into new markets are  exhausted.  

  It is conceivable, that long term, the system will no longer pro tract, and if not checked, unlimited accumulation, hyper inflation, and un sustainable debt, will create a world wide depression of unprecedented proportions, but such a scenario will be foreseeable given a greater access to technological forseeability of  market  stability.

 There seems to be  no other appearent  scenario, and the fact  that the US is not only the largest producer, but consumes 50 % of the world's resources, upon which world production is geared the implication is yes , America is too big to fall.

Hopefully USA will fail, it’s tireing that they sit on the internet, that they keeps an iron fist above Isreal, makes preemptive strikes and with massive colatteral damage, yet those tyrants needs to fall.

 What do You mean, "they sit on the internet"? And "hold an iron fist above Israel?". 

It looks like the US is an empire, not about to relinquish it's position in the world, come hell or high water.  Rome lasted a thousand years, with similar imperial aspirations.  With the super weapons based on high technology, it's hard not to see it as even more in control.  I think Americana, as the arbiter of world values is not acceptable to many people, the sad fact is, traditions are falling by the wayside as an exchange for quick financial gain, and the new generation would rather listen to rock than classical music.  The reminders of the past, the formal aesthetics of a bygone era, are slowly turning into dust, which had, since time immemorial symbolized stability, integrity and balance.  The world of Heraclitus has won over that of  Parmenedes, and the popularism which has eclipsed the ancient regime has knocked out the formal elements of civilization at large.  I am afraid the empirical/utalirarian world wide values, have pretty well set in, as foundation to the brave new world, and at the moment it the US, which is it's leading exponent.  Drusus, I see no other contender in the field at the moment.  

 The only threat to the Capitalistic world at the moment is terror, and the tenets, the reasons for this are manifold and confusing.  I do not think that the ancient Ottomans are reasserting themselves, as many people seem to believe.

We haven’t even Begun an Empire yet, we experimented with it before. And Perhaps you can think of our Nation itself during and after Manifest Destiney as an Empire but it’s kind of a Grey area.

What divides between a superstate and an Empire? The Primary Examples being the U.S., China, Russia,India and Brazil.

What we have is an Economic Hegemony, and as long as trade flows were pretty hands off, thats one reason why we don’t often annex the lands(outside of North America) that we’ve conquered.

Because it’s seen as more trouble than it’s worth, the Government wants the allies and the trade/resources. Not the People and Land.

US has the finger on the kill switch of the internet, it’s their laws and rules that applies to it. US has in all their selfimportaince, allowed them to have .gov, com, org, etc, but other countries must suffice with land code.

Where have you been the past 20 years? Where each president has made some cheap words about the long feud between Isreal and Palestina? Here recently when Palestine was given FN observer status or something like that, Barack Obama showed US true color and tryed to prevent it, that’s the color of dictatorship.

I don’t hate USA, but highly disagree with most of their choises to rule the world.

 Thanks for clarifying that. True in one instance.  I agree with the Palastine situation, but in the case of the internet, the US had a jump start on it, that's all.  I don't believe there was anything under handed involved there.

The Color of Dictatorship?

Explain.

True color = inner deepest, secret/concealed behaviour/thoughts.