How a Rich and Proud Nation Went Broke
Amidst a multitrillion dollar spending spree, President Obama apparently believes it’s inconceivable that a mighty nation such as the United States could go broke.
Yet France, once the most powerful nation in Europe, went broke and was plunged into a revolution that consumed the king and queen. Germany was bankrupted by reparations following World War I as well as the ruinous costs of sustaining money-losing, government-run enterprises (particularly railroads). Chile’s socialist regime was bankrupt during the early 1970s. In recent years, Thailand, Korea, and Hungary were bailed out by the International Monetary Fund. Russia, Ecuador, Pakistan, and Ivory Coast have defaulted on their debts.
Argentina is probably the most intriguing case for Americans now. Argentina is currently broke, and last year President Cristina Fernandez de Kirchner seized private pension funds in a desperate effort to cover government budget deficits.
Harold
