Vallejo, Callifornia will go bankrupt

I thought many of you might be interesten in this story about a town in Callifornia on the verge of bankruptcy. Could the U.S. Federal government be far behind?

http://www.nbc11.com/news/15345539/detail.html

Interesting.  California is the world's sixth or seventh largest economy, but it has towns within its borders that are on the verge of economic collapse.

I don't know how far behind the US as a whole is, but it is on that path. 

I wouldn't expect the U.S. government to follow the path of Vallejo anytime soon. Primarily the federal government has the enormous advantage of being able to create new money to fund it's operations. Even if this results in cycles per A.B.C.T we are still a long way from a complete currency breakdown. In addition residents of a town can move relatively easily to another municipality or state to avoid exorbitant taxes whereas I don't see Americans emigrating to other countries in the same degree because of higher taxes.

ricarpe:

Interesting.  California is the world's sixth or seventh largest economy, but it has towns within its borders that are on the verge of economic collapse.

I don't know how far behind the US as a whole is, but it is on that path. 

 

The fact that the U.S. is the world's largest economy does not imply that its enterprises are immune to bankruptcy. In fact it is quite the opposite, regular bankruptcy of failed companies makes the U.S. the largest economy.