Have you ever wondered what happens when a nation goes bankrupt? There is no bankruptcy court for nations. A country cannot just fade away into non-existence as can a corporation. Merger is not a way out either.
A look at the country of Greece and at the city of Oakland, California will give us a clue. Neither is quite bankrupt but both are on the verge. In Greece riots over reduction in spending have already killed a few people. In Oakland the police chief threatens not to respond to telephone calls in cases of burglary, grand theft, vandalism or auto accidents, and a list of certain other offenses. This is no doubt a threat for political purposes, but it gives us a hint as to what can happen when a government entity truly cannot pay their bills.
Policemen, firemen and teachers, will they continue to work if they are not paid? They will not and chaos is the result. Sporadic riots and looting erupt. Some people die. If the nation is one with a single payer* health plan and can no longer pay its bills, everyone’s health care is in curtailed. Radical change in government becomes acceptable, even sought for by the people.
The change can take a turn to conservative rule such as happened in Chile, or it can be reliance on the grand promises of a despot as happened in Germany. It can revert to prosperity as have Chile and Germany, or continue to meander somewhere between mediocrity and misery such as was the case for the people of the Soviet Union and its satellites. These are the inevitable ends for nations that continue to spend beyond their means, right into insolvency. Obama is accelerating our descent into this pit. He can be stopped. He must be stopped.
*propagandic – for fully government paid and controlled
UPDATE July 16
Philadelphia Mayor calls for closure of firehouses.