[9YearLurker]

Because the US government has the right to confiscate the entire wealth of the country, it is no where near insolvent from an investor’s perspective. It is only if it were perceived to be willing to reneg on its obligations that it would be uncreditworthy.

So Ron Paul is advocating the ultimate self-fulfilling prophecy.

[Parmy]

We take in 2 billion a month; 2.4 trillion a year. The debt is 14 trillion. If more money is spent than comes in, that is the definition of 'insolvent'.

It the U.S. were a business, it would have been in bankruptcy long before this and its assets sold and it would no longer exist.

[BfloGuy]

Because the US government has the right to confiscate the entire wealth of the country, it is no where near insolvent from an investor’s perspective.

Oh, really?

Would you invest in a country where the government had confiscated the entire wealth (or just, say, half)? Ron Paul may not be presidential material, but he's right.