View of the 1959 ERA error:

Sorry... it was the Aussie accent wot got me.

That economic collapse.... er, it's not that far off.  Chinese loans are all that keep the US economy slightly buoyant at the moment.  Once the Chinese either call in the debt or cease to lend {nobody likes to throw good money after bad] the US economy will plummet down the shit shute faster than a politician finding a scapegoat for his latest f**kup.

So as with Greece, why won't Europe, Asia, the IMF come to the rescue... because the US economy became too large with the emphasis on exponential growth, and as such is too great to be salvaged purely by the injection of funds.  No, it will take much more... a scaling back of the military and resource intensive industry; a forced reduction in the standard of living; a going back to the basics that will see the US more dependent on the good will and charity of the rest of the world than ever before. 

Sadly, with Australian bankers and businessmen out-Americaning their Americans counterparts in the greed stakes, and the close ties lil Johnny created through his 'open trade agreement' with the US, Australia will go down the same shit shute right behind the US... so no, we don't have a lot to smile about, look forward to.

Meh...

Talk of economic collapse is overblown in my opinion.  Not to suggest there are not serious fundamental issues which need to be dealt with, and the jist of your 2nd paragraph is correct.

China can't afford *not* not continue investing in the US, for the time being.  There simply is not another market for them to sell their shit to to maintain the growth they are trying to achieve.  That is *right now*.  Things can and will change, just probably not very quickly.  None the less, the US needs to figure out something, some way to correct the debt society we live in.  I don't have an answer for that, but I'm not adverse to some austerity programs, as Greece and Portugal are attempting. 

Unfortunately what passes for leadership in Washington, is more interested in prosecuting their own petty vendettas against the 'other side', rather than actually dealing with any issues of substance.  And from the looks of the republican primary candidates, it's actually going to get worse as they run on these asinine moral/ethical platforms which have nothing to do with, you know, real issues.  As if gay marriage makes one shit of difference to the economy, or the continuing military operations around the globe.

We'll see!  At the end of the day it will come down to the generosity of the rest of the world and who sees a need to bail the US out.  Several nations will feel the US has trodden on too many toes over the years, so how much economic aid is given will depend largely on them.  Not too many will dust off an adversary to fight another day, so yes, it remains to be seen.

I'm glad that you said "for the time being", because if I learned anything in history at school, it's how astute the Chinese are in business/economics... and the one thing they would be painfully aware of is that unabated exponential growth is impossible and that all empires fall.  While it is true that the US represents a huge market for Chinese consumables, it is not the only market and the Chinese would adjust accordingly if exports to the US slumped.  They would gear more toward Europe, the Middle East and Australia, etc

Furthermore, the US exported many of its manufacturing concerns to China to exploit cheap labour, and that suited the Chinese just perfectly.  With Us debt mounting daily, what do you think is going to happen to those US owned assets based in China?   That's right, the Chinese will foreclose and seize those assets as payment for outstanding debts.  No longer will China be partners in business, they will be outright owners of those assets and the loss of capital will send the US economy into a tailspin and taking an equally greedy Australia down with it. 

Am I wrong??  If only I were!!!  This has been writing on the wall for quite some time now... it's just that it's only becoming apparent to the perpetrators of their own undoing now.

Sadly we elect imbeciles and this is what we get [here in Oz too]... politicians who would rather bicker than resolve the real issues. To be honest, though, I am absolutely astounded that a country which can put man on the moon can't organise universal health care or make common sense decisions for the common good.  So yeah, the US needs to go through some fundamental changes if it is to survive at all, and excluding the influence of big business from all forms of politics would be a good start. 

Actually, the jerks in Washington DC do fight amongst themselves - but much of it is smoke and mirrors.  Divide and conquer (the electorate).  I don;t see anyone in Washington demanding that the massive tax cuts on the uber - rich be rolled back, even a tiny bit.  Cut the poor, cut the middle class, cut the govt employees (and remove their rights to collective bargaining), but don't even think of rolling back the massive tax cuts the uber wealthy had enjoyed since 1970.  BTW, when are the 'representives' in DC going to cut their own salaries, benefits, and perks?  Shared sacrifice seems to mean: only the poor and middle classes have to sacrifice.

And this is why I say the twain shalt not meet when it comes to politics and big business/the super wealthy.  When big business influences government you no longer have a government for the people by the people.  Same thing when the super wealthy become politicians... they look out for their own and the little bloke gets screwed.  

Two things that should be outlawed entirely: political donations by big business; political lobbying by corporate interests.... to separate the machinations of government from the private sector.  Maybe then government would represent the masses and not just a handful of filthy rich bastards who think they're God's gift....

Furthermore, it should be passed into law that ANY politician who fails to truly represent the people of his/her electorate be instantly dismissed... irrespective of the term.  If a politician betrays his/her voters mid-term, then he/she is ejected from office mid-term and a new election is held to vote in a new representative. This move is necessary to stop politicians resting on their laurels once the polls are closed... it also stops politicians selling out to corporate interests at the expense of the voting public.  In other words, make no political seat safe and make the bastards work for the people for a change.

All such high philosophical notions aside.......we'll probably do ourselves in. Mother Earths problem solved.  Just my 2 cents...23 cents for inflation.

I think things will have to slide much much more than they already have for the world to write off the US as you suggest.  Bush didn't do *that* much damage... ;)  And anyway, that kind of nonsense is what drives tabloids and politicians trying score some quick numbers in the polls.  It doesn't do much for actual political decisions.  In as much as anyone actually makes actual political decisions anymore...

The Chinese are astute in business/economics?  I'll take your word for it, I'm no business man or economist.  I'm not sure how far back in 'history' you are going though, because it would seem that either we had very different history lessons, or one of us slept though most of them ;)  Now talking about the present (and recent past) you can make this argument more strongly, but the advantages China is leveraging to gain this 'astuteness' are not exactly self perpetuating either.  China needs external markets, if the US goes belly up, who are they selling to?  Europe?  Not likely, the EU is going to be (already is) having their own issues if the US fails.  Middle East?  Please, that's a drop in the bucket as a market goes.  Aussies?  Again, consumption is what drives the current Chinese model, you aren't making up that consumption in the rest of the world if the US flops.  Thus, China can't afford to shut off the US, or hasten it's economic demise,  unless China is planning do change it's own model.

US owned assets?  You mean US government owned assets?  How is China going to seize Microsofts assets?  It's not the same thing.  Not to say that China couldn't do it, but I'm not grasping what these assets actually are that you are talking about.  China can't foreclose on US companies can they?  Well, they can, but I don't imagine that's really what the issue is here.  In any case, foreclosing on the US would be massively damaging to their own economy.  Again, they are producers.  Producers need consumers.  Screwing the US economy means no consumers for their products (well some say the Chinese will become their own consumers, but again, that's a house of cards economically isn't it?).

I agree with the sentiment perfectly.  I don't engage in the hyperbole (well usually).  Survive at all is a reach in my opinion.  Fundamental change would be good, and likely necessary, lest the fundamental change is really for the worse.

Let's just say it won't be a matter of the world writing off the US so much, but rather that the US economy is far too large for any one country or three to pull out of the mire.  Even China, the world's second largest economy, would not be able to salvage it.  The current Chinese loans are but a drop in the ocean compared to what is needed, and with the majority of Europe, Britain, etc, still struggling to recover from the last financial meltdown [and keep Greece afloat], dollars for economic aid are sparse.

Yes, China needs external markets if it is to continue on its path of manufacturing and economic growth, but if the market simply isn't there, as in US consumers are flat broke and aren't buying, then it will be forced to adjust its projections accordingly and produce less.  And why won't the US economy bounce back like before?  One: too many manufacturing jobs were sent offshore and now Chinese workers are performing the jobs US workers once did.  Two: the US based a large part of its economy on its massive war machine and the production of arms, and both have gone into decline as the world begins to wise up and not go to war.  Sure there will be despots and trouble makers rise up to upset the balance of things, but it won't be enough to fuel the US war economy.

As was mentioned above, many US manufacturers based their operations in China to exploit cheap labour, thus making the Chinese partners.  Okay, so when their US counterparts cannot meet their financial obligations, etc, the Chinese will be entitled to take over the insolvent part of the company in order to protect its own investment. It's simple economics, really... the financially stronger partner will succeed over the weaker one.   Now Microsoft mightn't be going guts up right now, and its assets in China may be safe for the time being, but the economic slide has not yet completed and its future as yet is undetermined.  Should Microsoft fail to sell its Windows 8 to a shrinking market [who buys an OS (and/or Office) in difficult times], its fortunes could see a reversal for the first time in history and even the once solid MS finds itself the target of a hostile offshore takeover.

Some will be rubbing their hands with glee and saying that the pigeons have come home to roost, but me, well I'm not happy because Australia goes guts up when the US does.  Too many Australian businesses were taken over by US concerns, and we simply do not have the resources any more to refinance, rebuild those businesses under new Australian ownership.  Many food production factories will simply close, thus escalating unemployment and our dependence on imports.  No, it is not a good thing, but the insatiable greed of US and Australian corporations {don't get me started on our effing bankers] has brought us to this.  Let's face it, we are confronted with a new world order, economically speaking, and we'd better get darned used to it or be left a wanting.

Ugh, I hope things can some what stabalize (though Im dobtful).  Keeping a roof overhead and food on the table can be tough already, rising taxes and a lack of pay increase for 8 or 9 years (even for cost of living) hasn't done any favors.  Luckily right now I can get to work thru public transit or by foot.  I couldn't afford a car even if I would feel comfortable/safe driving one.  As long as it stays somewhat stable, and I can maintain my medication and employment it should be ok, but it will spiral down pretty fast otherwise, especially if my housing is compromised (in which case there will be at least 8 other people effected).

I'm going to have to go watch or read something to bring my mood back up, all this maudilin crap will just fester and promote self-destructive tendencies and rash decision making otherwise.

Hopefully, that'll be the Wall St bankers [like in the depression] taking swan dives out high-rise windows.

Equal distribution of wealth imposed by a cyber intelligence. Loss of basic freedoms to ensure management of resources and minimized corruption. Population controlled by enforced sterility at birth and fertilization as a reward for good citizenship. 

It seems harsh, but this is a good last defense plan if things really get out of hand. I would choose it as a first step to rationalization and special improvement myself. Any takers?

Get real!  Not many would accept that. Myself I'd prefer to fight over the limited resources left by plundering Africa so my people can survive with a high standard of living until we develop good water, solar and nuclear power.

Oh lol, you thought I meant that everyone would have to agree to the new system. No. I have the plan in place right now. At my command I can change everything: by the time you all realize what is happening, it will be too late. All I need do is initialize the program. 

I will wait a few more years to see if things can fix themselves.