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Are you referring to America? Well, infact, a number of things could happen.
First of all, bankrupcy is highly unlikely. Especially in todays world. Usually when a country finds themselves heading in a direction where the government can no longer support a failing economy the first thing they will do is meet with other nations to form trade agreements to increase trade. For example, Country A, might meet with Country B and ask Country B to lift customs fees/tariffs to increase imports of Country A's goods.
If this fails, they will then seek loans from other countries. Usually this will be their allies since in peace agreements they usually, not only include military peace but also include economic peace which means the other country will bail them out.
If that fails then they will seek assistance from other countries and for something that their country has to offer in return. For example, Country B agress to assist Country A with financial assistance if Country A allows Country B to use a military base(s) in Country A's jurisdiction. It also means that Country B would have a HUGE influence over Country A's political position and 'world view.'
IF THAT FAILS...
1) The Stock Market will crash and credit will seize
2) All financial institutions will fail
3) All government funded programs will end (such as medicaid, defense, police, education, infrastruture support like roads, utilities etc)
4) Business will close and jobs will be lost
5) There will be mass rioting (and no police to stop the rioters or fire fighters to fight the fire)
6) Everyone will start killing each other for food
7) The rich will buy the country and turn a democracy into a Dictatorship
As of March 1 the American government will be bankrupt
Before #1-7 can happen, the US will simply default on its debt. For an example of what happens then, see Argentina.
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∙ 12y ago
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What happens when supply goes down?
when supply goes down the price goes up>
Is Mercantilism bankrupt theory that has no place in the modern world?
In its purest sense, mercantilism is a bankrupt theory that has no place in the modern world. The principle tenant of mercantilism is that a country should maintain a trade surplus, even if that means that imports are limited by government intervention. This policy is bankrupt for at least two reasons. First, it is inconsistent with the general notion of globalization, which is becoming more and more prevalent in the world. A policy of mercantilism will anger potential trade partners because it will exclude their goods from free access to the mercantilist country's markets. Eventually, a country will find it difficult to export if it imposes oppressive quotas and tariffs on its imports. Second, mercantilism is bankrupt because it hurts the consumers in the mercantilist country. By denying its consumers access to either "cheaper" goods from other countries or more "sophisticated" goods from other countries, the mercantilist country's ordinary consumers suffer.
What happens when price goes up in elasticity of demand?
demand goes down
What happens to prices when there is a surplus?
the price goes down
In which year did General motors go bankrupt?
General Motors has gone bankrupt six months ago/////they are not bankrupt they just ment under the protection of the court to give them time to reorganize
What happens to the government if a company goes bankrupt?
Nothing.
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It can not pay its employees or pay for its services.
What happens to your warranty when a company goes bankrupt?
If the Bankrupt company is just the retailer then the warranty is still covered by the manufacturer. If the manufacturer goes bankrupt then the retailer covers the warranty. The seller is responsible for a warranty. Clearly if the seller is the manufacturer and they go bankrupt then it's most unlikely that the warranty will remain in force.
What happens to a publicly traded company when its stock goes to zero?
you can claim a CAPITAL GAIN LOSS ON YOUR TAX RETURN FOR THE YEAR IF THE COMPANY GOES BANKRUPT that's it.
What happens to your 401k if AIG goes bankrupt?
I have a claim on a car insurance policy with AIG. What are the chances of this claim being met?
What will bankrupt solve?
When one goes bankrupt, one's debts are cancelled.
What happens to country with little population?
With very little population can cause the city/town/ village to bankrupt and not beable to get supplies
Will i get my money back if my travel agency goes bankrupt?
Not likely. Bankrupt means that they have no money.
Finland is a bankrupt country?
No.
What should you do if your state goes bankrupt?
move.
What European country is nearly bankrupt?
# It is I _ _ _ _ _ _
What does it mean when a bank fails?
It means a bank goes out of business or goes bankrupt.
