National Debt Clock

Thursday, July 16, 2009

Joe Biden: ‘We Have to Go Spend Money to Keep From Going Bankrupt’

" 'You’re telling me we have to go spend money to keep from going bankrupt?’ Biden said. 'The answer is yes, I’m telling you.'”

Bankrupt: Having been legally declared financially insolvent.
Insolvent: Having liabilities in excess of a reasonable market value of assets held

According to these definitions, to prevent bankruptcy, one must become more solvent. That would mean reducing liabilities or increase assets.

According to Biden, to prevent bankruptcy, one must also become more solvent. This is accomplished by increasing liabilities, borrowing more debt, and decreasing assets, spending money. Make sense? duh.

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