Would the federal government lose control if...?

Question

all, or most of the states went bankrupt? I mean, I'm sort of worried about the economy right now, but not that much. I suspect the gov't can simply say "we're no longer in debt" somehow, someway, or something like that which would make our situation somewhat better for a while.

If this happened with the states however, I fear there would be HUGE problems.

Answer 1

the states wouldn't go bankrupt anyways there is pretty much a bottomless pit of debt from the cold war. the federal government wouldn't seize control in the first place because everyone is supposdd to cancel eachother out. Like when the president wants to wage war. congress has to agree with it.

but if anything our government could do that would put us into even more debt and almost putting us into depression but in the long run making our econemy florish is to set up refinery's for oil in the united states and sell it to every other country close to us in military relations. We have a c**p load of oil just sitting under us...jsut sitting there all we have to do is take it

Answer 2

When states go bankrupt, they owe on their debts, usually in the form of bonds sold to Americans and foreign interests.

Their inability to get future credit would mean that they would have to live within their means.

Could be interesting.

Answer 3

Are you insinuating that the govt. has not lost control already?

  Sorry, but as a realist who loves to study history... i dont have much good to say for our future in terms of politics and/or economics either... Every administration gets worse and worse, and Im honestly not too enchanted with any of the current nominees this time around either.

Answer 4

Look at the Depression. We held together then. But when it hit Germany even harder, a certain leader seized control...

Answer 5

No. In fact the Federal Government would use that as the perfect excuse to seize total control.

Answer 6

Sure the government can SAY that, to soothe the uneducated, but those in the know know better.   Debt is debt.   That is like having a neighbor borrow money from you and was making payments but one day said "I am paid up"       You didn't get all your money back, so you are gonna be P.O.'d.   Would you continue to do business  with this neighbor if they continued to want stuff and promised to pay, but paid what THEY felt like paying?  I don't think so.  You would stop doing business with that neighbor until they were truly paid up.

Correct?

So, the government learns to juggle the finances....spending less here so to have more here.

Every four years you have a chance to vote in someone else to balance the books differently.

Answer 7

The counrty has been in worse shape before.  There are is always a "down" time and then an "up" time.  Hopefully, we won't be in this recession for long.  Americans need to let this be a learning lesson is saving and being prepared for the unexpectable.