When Do We Declare Britain Bankrupt?

The bankruptcy of the United States is now certain

According to Porter Stansberry in the S&A Digest yesterday reports The Daily Crux:

"Within the next 12 months, the U.S. Treasury will have to refinance $2 trillion in short-term debt. And that's not counting any additional deficit spending, which is estimated to be around $1.5 trillion. Put the two numbers together. Then ask yourself, how in the world can the Treasury borrow $3.5 trillion in only one year? That's an amount equal to nearly 30% of our entire GDP. And we're the world's biggest economy. Where will the money come from?"

This article is riveting. It explains the rules that countries follow to avoid 'default' or bankruptcy:

"To avoid a default, countries should maintain hard currency reserves equal to at least 100% of their short-term foreign debt maturities."

Ok, what does this mean then?:

"The principle behind the rule is simple. If you can't pay off all of your foreign debts in the next 12 months, you're a terrible credit risk. Speculators are going to target your bonds and your currency, making it impossible to refinance your debts. A default is assured."

So, the US holds around $500 billion in foreign currencies, gold and oil reserves. While on top of the budget deficit of $1.5 trillion, The US Treasury (according to themselves) will have to borrow $2 trillion more in the next 12 months. Apparently 44% of that debt is owed to foreigners meaning $880 billion which is a lot more than the US's reserves.

Mmm, the US has to finance $3 trillion this year. The entire population save only $600 billion so even if the entire population stuck their saving into treasury bonds (T-Bills) it still wouldn't pay the deficit. Nowhere close! Foreign countries have stopped buying T-bills and are buying gold instead..

What are they going to do then? Print and Print and Print. Watch that $ collapse and watch gold sky-rocket!

Meanwhile, back in Blighty? The Bank of England continues to print money too. A large % of the UK's budget is pure new money printing. Watch how the pound slides. And if you thought that that was good for exporters. It is but Britain is an import country, thanks to Brown, so it makes matters worse.

If you haven't bought gold or silver, start thinking about growing food and buying storeable food. As prices rocket you'll be glad you stock-piled when you did. Expect to see a growth in scavenging through bins, thefts, robberies etc. And civil unrest? When people's kids go hungry, no amount of soap operas, phoney terror wars or SNP spent a tenner on a pizza stories are going to distract them from getting food whatever way they can.

Listen to the bull about recovery today, go hungry tomorrow!

Brown and the banksters are not to be trusted people. Switch off the BBC and start thinking for yourselves!