The government borrows 4 billion a day (http://www.politifact.com/rhode-island/statements/2011/may/04/national-republican-congressional-committee/gop-congressional-committee-says-us-borrows-4-bill/) That's not just "being in debt"-that's bankrupt. Even the governments credit rating is on the verge of being downgraded by Moody's (http://money.cnn.com/2011/08/02/news/economy/moodys_credit_rating/index.htm)

In the real, practical world, that is bankruptcy. A credit default is a "soft" bankruptcy.

as I observe Donald Trump, I realize , even 'bankrupt'
does not necessarily mean 'broke'

Economic analyst Bill Bonner(http://en.wikipedia.org/wiki/Bill_Bonner_(author)) recently noted:
http://www.lewrockwell.com/bonner/bonner270.html
Is the United States of America, asks Laurence J. Kotlikoff, professor of economics at Boston University, "at the end of its resources, exhausted, stripped bare, destitute, bereft, wanting in property, or wrecked in consequence of failure to pay its creditors?"

Or, abandoning the Oxford English Dictionary for Ray Charles, are Americans "busted, broke...no bread...I mean like nuthin'?"

Answering his own question in the affirmative, Professor Kotlikoff explains: "This partial equilibrium analysis strongly suggests that the U.S. government is, indeed, bankrupt, insofar as it will be unable to pay its creditors, who, in this context, are current and future generations to whom it has explicitly or implicitly promised future net payments of various kinds."

We don't know what a partial equilibrium analysis is. But since it supports our general view, we ask no questions. Instead, we merely probe more deeply into the report for elaboration and amusement.

"Unless the United State moves quickly to fundamentally change and restrain its fiscal behavior," Kotlikoff continues, "bankruptcy will become a foregone conclusion."
"This does not particularly help us. We have no doubt that the nation will be bankrupt. What caught our eye was the assertion that it is already broke. But that, it turns out, depends on what you mean by the word 'broke.'

"The proper way to consider a country's solvency," goes on the professor, "is to examine the life-time fiscal burdens facing current and future generations. If these burdens exceed the resources of those generations, get close to doing so, or simply get so high as to preclude their full collection, the country's policy will be unsustainable and can constitute or lead to national bankruptcy.

"Does the United States fit this bill? No one knows for sure, but there are strong reasons to believe the United States may be going broke."

Among the strongest reasons is a study of the total net "fiscal gap" that the country faces. This is the present value of the difference between the government's future income and expenses — calculated using optimistic assumptions and not including any contingent liabilities, such as those that rise with the water level in New Orleans, or with insurgent activity in Iraq. No, these are the basics: interest payments, government operations, social security, and drug money. The figure, as negative and depressing as our Daily Reckonings occasionally are, is $65.9 trillion — or about 500% of the nation's GDP."

Spending 500% of GDP is bankruptcy for all intents and purposes.

so, IF someone is making fifty grand a year and buys a house for 250 grand, they are automatically broke?

it seems mixing future bills and debts with a current income is an inaccurate way to define such things,,,

but Im no expert in accounting,, just pretty good with numbers...