Is the US bankrupt?

Ergo, the USA is bankrupt. The US Government Accountability Office (GAO) publishes financial statements each year in which they list all official government assets and liabilities. Why is America not bankrupt with such a large debt? Sovereign debt is not like personal debt.

How much debt does America owe?

When the Bowles-Simpson commission was formed, America was about $13 trillion in debt. Today, we owe more than double that, more than $26 trillion. Those numbers are so big nobody understands them. To put it in perspective, our entire economic output in 2020 was $21 trillion.

Why is Pakistan bankrupt?

The answer is simple. They are financially Bankrupt as their deficit is increasing. their currency is in a free fall. Now it is PKR 170 equals one 1 US $; from 110 PKR in about one year since Imran Khan has taken over. Normally this devaluation should right the situation.

Why have we not seen a financial crisis in America?

The result is catastrophic reductions in spending and increases in taxes to try to satisfy creditors to keep the money flowing. The only reason we haven’t seen it yet in America is we are such an economically powerful country that our creditors have not yet lost faith in our ability to pay it off.