What really happens when a govt. is broke
Re: The govt. is broke
When a country is highly leveraged to the extent that their liabilities are 100% more than what their G.D.P is calling for, than that country is said to be insolvent. So how can they try to dig themselves out of this mess?
By raising taxes on everything that they can think of.
The real culprits behind all this are the International Bankers colluding with corrupt govt. officials to loan them money for infrastructure projects and they rely on the people of that country to pay the debt by raising taxes, and using their land as a security for these loans.
This type of scam by the banks are well documented in John Perkins book; The confession of an economic hit man.
Most third world countries are victims of these abuses by these banks. Prime example of this scenario is Greece. “Crooked” Goldman Sachs bank underwrote Greece’s balance sheet and “customized” (creative accounting) its debt from the EU so they can be accepted in the EU and pocketed huge fees from that transaction. Where is Greece now?
They are in a state of collapse financially. Is Samoa the next shoe to drop?
I don’t know, but all the elements that constitute such scenario is evident by the drastic raising of taxes and fees that they can think of.
Leituala Roger B.