It’s not public debt that’s a problem , it’s the government
( Bush ) overspending and borrowing more to try and stay solvent. Where would you be if you spent money the way Bush does . . . bankruptcy court weekly .
If you’re talking U.S. it already IS bankrupt ! meaning it does not have enough gold/ reserves, to pay all it’s debt. Fortunately other countries don’t/ wont ‘call’ in that debt. Public debt / Govt. debt are one and the same since the Govt. IS the people [ or is supposed to be ! ], the same principles apply to governments as to individuals, if you spend more than you ‘earn’ you go broke !! So, Govt. spending [ health, military, education, administration, etc. ] exceeds ‘earnings [ taxes mostly ] meaning they / you are BROKE !!
Yes. Argentina and Brazil are recent examples.
If you borrow too much and can’t repay you go bankrupt. This principle applies to everyone, even governments.
December 22nd, 2009 at 5:19 pm
yes if the other countries who own are debt want all the money or if there rates are raised more then we can raise others to pay for it