At some point, the U.S., states and local government will be forced to default on all their financial obligations such as interest on bonds, pensions, medical care, etc. This will happen in one of two ways: either insolvency will be announced, i.e. we can no longer pay our obligations, or the dollar will be devalued to 10 cents (or less), thus reducing everyone’s Social Security pension of $1,000 down to $100 (or less). Magically, all debt and interest due gets cut by 90%, too.
“Remember, to arrive at the bailout number the Treasury bean-counters just picked ‘a really big number.’ How do you have confidence in anyone like that, who dares to refer to themself as an economist? I refer to them by what they really are: bean-counters, ass-hats, pretenders, criminal co-conspirator. They know as much about economics as a priest really knows about God.”