What does the Fed "balance sheet" mean? What would a Fed bankruptcy mean? I suggest instead looking at the state and credit of the national economy; in particular at the willingness of other nations to continue taking US $$$ in exchange for their exports.

Two different Nobel Prize committees. Samuelson and Krugman got Economics prizes founded and funded by the Swedish Riksbank. Obama got a Peace prize, funded by Alfred Nobel's estate and awarded by a committee of the Norwegian Parliament. -- Looks like two two committees with a history of mis-awards, one more often than the other.

The main problem in your example is found in "3-", that "your income has doubled". That is not guaranteed, and many times it does not happen.

To Curt169 & Jack142: The innovation is ergonomics that makes the hardware and apps easier for us humans to use. For some, the to-be-answered questions are 1) can money be made off it? 2) will Americans get decent paying jobs from it? 3) Will the American economy benefit from it? A businessman thinks more to the point: will customers like it well enough to pay money for it? , enough money to be profitable?

We have plenty of born-here Americans who won't work and try to live off the backs of the American producers. Immigrants take (at lower wages) the work that those born-here slackers won't look-for / seek / apply-for / attempt to do.

Back in the day, the British Parliament came into existence to restrain the wild spending habits of the British monarch. Our U.S. Congress and Government was set up in quasi-imitation of the British system that existed in the 1780s. Given the wild-spending that we see, something isn't working.

Columnist Jeff Crouere: "red states like Texas will become blue and then the GOP can forget about winning another presidential election. " Hmm. An interesting speculation. If the GOP becomes irrelevant and goes the way of the Federalist and the Whig party, what happens to American politics? Will the political shifting lead to a new not-Democrat party? Or do we become a fake, one-party, democracy? Or if we somehow retain two parties does it matter if both parties turn out to be statist not-for-freedom parties of government?

What you describe, in a sense, makes downtown Los Angeles a perfect setting for a revival of the play 'The Madwoman of Chaillot'. (Maybe Nancy Pelosi will consent to play the madwoman ...)

First, call the onslaught what it is, "Open borders and resident citizenship." Sort of like what America was like 200 years ago. This may be fate. Second, our ruling class seems unaware that such a mass of people will transform the nation, and the new mass of people will produce leaders who will evict our ruling class, and become the new ruling class.

Sounds like a description of supply and demand dynamics. And normally the price (the rate) settles at some mid-point that equalizes the amount of borrowing and lending. Worth considering WHY that isn't happening currently.