With the U.S. borrowing so much, why aren't we broke?

Laurence Kotlikoff asks the same question as in the title of this column, Is the United States Bankrupt?(PDF), in the Federal Reserve Bank of St. Louis Review (July/August 2006).

The column was written in 1991, with the insane policies of the Bushmeat gang still many years in the future.

This article is a current review of the second question in the column; no implication made about its direct connection to the column.

Loved the article, II Gyan II. Economic papers tend to send me into MEGO-land, but I managed to read most of it before I fell asleep and broke my nose on my desk.

Now all I have to do is figure out some way to get obscenely rich in the near future so I can afford to live 20 years from now. So far, my “Wait for someone to give me piles of money” strategy isn’t working.


Essentially, because the dollar and the United States government have been stable for a very long time.

As long as people maintain enough confidence, the sale of Treasury bonds will be enough to finance our essentially permanent cycle of what in any other situation would be called bankruptcy.