A lot of the western democracies are pretty bankrupt. But what's worse is that China's economy is still growing by leaps and bounds and that country almost "owns" the United States, at least for now. I think if the average American were really to put their minds to learning something about world economics, they'd be scared to death right now. In this instance, maybe ignorance really is bliss.
What is sadly happening in California is a quintessential example as to how not only a state, but an entire country might go to complete financial ruin on a rocket sled. I have to say, and I'm sure I'm not alone, that I am far far more concerned about our economic viability in the foreseeable future, than even any external agression (and that's not to say we don't have to worry about that as well). At some point the entire bill for what can only be described as this unbelievable orgy of spending will come due and when it does, the suffering of the average American that will result from such a payment will, again in my opinion, possibly be unimaginable.
It's all so sad; so very, very sad.