IS AMERICA A TECHNICALLY BANKRUPT COUNTRY?

Well, if according to former PM Dr Mahathir Mohamad, the United States is technically a bankrupt country as its budget and trade are in deficit forms currently.

The former prime minister, however, said due to its superpower status, the United States was not declared a bankrupt.

BERNAMA on Sunday quoted him telling reporters at the World Islamic Economic Forum [WIEF]:

"If countries like Malaysia is put in the same situation, surely it will be declared bankrupt."

More!

I trust there are many more countries sufferring budget and trade deficit but so far have not heard any of those countries being categorised as a bankrupt nation.

Does that mean that we can now label a country as "bankrupt" just because its budget and trade are in deficit forms?

So, is it true that US is a bankrupt country as was claimed by Dr M?