The thing that makes the US (and Europe and Japan) different from all sovereign defaults of the past is ÌNTELLECTUAL PROPERTY.

Countries that have defaulted in the past have had to sacrifice their countries assets. This was done through IMF loans and currency devaluation that allowed American companies to buy their assets on the cheap.

But, now that it is the G7 countries that are in trouble, what will be the pound of flesh that its creditors extract

I believe that the pound of flesh that their creditors (especially China) will extract is that they will feel justified in no longer respecting (paying rent on) intellectual property rights in areas such as technology, agriculture, pharmacueticals, and manufacturing.

So, G7 creditors will see the purchasing power of their savings wiped out, but in return, the rest of the world gets to leap frog in regards to advancements that have been developed by companies that are domiciled in G7 countries.

This means, the profitability of these companies will evaporate.

Bad for developed country investors, but good for the world as a whole.

NOW the “powers that be” are holding the bag (of debt) that THEY CREATED, hoping to restore THEIR DEBT system, and they are desperate to get others (aka US) to take the debt load off their shoulders. But we’re not buying it, heh heh heh.

All the moneychangers have been laid bare before everyone (as the liars and thieves they are), their tables have been turned over, their “golden calf” (Bull) they created on Wall Street (to draw everyone into their ponzi-scheme of masquerading derivatives) has been ground to dust, and THEY are going to eat every little bit of it as THEY are slaughtered by their own deceit.

The “Net Worth” of people will NO LONGER BE MEASURED by mere “money”, nor the amount of DEBT that anyone can carry to uphold that beast (of DEBT) you call an “economy”.

The REAL economy that is emerging in the midst of all this confusion that bankers and governments have created is going to take over everything – and it is founded upon FAMILIES who serve their God, their own and their communities, wherever they may find themselves.

So keep your “DEBT” based economy (and watch with joy as it goes BUST), people don’t want any more economic bondage, people want REAL relationships that fulfill life, create real wealth and worth, and THOSE are measured by what one can GIVE for the good of all, not by how many people can be hooked by greed and enslaved in DEBT because they continually lust for MORE– that NEVER SATISFIES ANYWAY.

So let meaningful face to face relationships be created between people who are willing to serve each other in common good – and LET the hypocrites who wear masks to deceive each other deal with their own worhtless “paper”.

Heh heh heh!!!

WHERE???

WHEN???

HOW MANY, Mr. Bonner? Certainly not nearly the same amount as those that have, already lost them!

Factories close down…and open up again, producing something else.

Show us examples of CLOSED factories that’s been refitted to ‘produce something else’. Have you been to Steubenville, Ohio?

Companies go broke…and new companies spring up to take their places. That’s what needs to happen.

No argument with THAT IF the new companies spring up in sufficient type and number to put the myriad numbers of unemployed back to work.

Then, after this restructuring, the economy can begin rebuilding on a more solid foundation.

More solid than the quicksand in which we find ourselves, now, no doubt, but that still may not be saying much. You have no idea of the time line for restructuring either.

Your prescription is as flawed as those presently being administered.

The brutal fact of the matter is, aside from pushing the printing panic button, NO ONE HAS THE FOGGIEST IDEA OF PRECISELY WHAT TO DO beyond hopelessly vague bromides like those advanced above.

That’s how capitalism is supposed to work.”

Ahhh, but this isn’t capitalism anymore. If the government didn’t inject money into these institutional entities such as AIG and Merril Lynch, how would they pay these bonuses that they are contractually required to? The answer is that they couldn’t because they have no organic cash flow in which to derive it from. What they are doing amounts to stealing money from the rest of us non-banking workers and the government enables it. That is why the outrage is justified. You would expect bankers to try to pay themselves these undeserved windfalls, but the government is the one that facilitated it. The government is to blame. They are stealing from the collective to pay financial services aristocrats. These bonuses were not earned but stolen from society. As soon as AIG took public funds, it became public business. It is a disgrace to our government that they were ever paid out to begin with. It is a bigger disgrace that these institutions were not liquidated. But alas, this is not capitalism but a feudal system masquerading as such.