What stops a country walking away from its debts like a company can?

Discussion in 'Markets & Economies' started by Ag bullet, Oct 10, 2015.

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  1. Skyrocket

    Skyrocket Well-Known Member Silver Stacker

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    Not for much longer me think. It's days are numbered.
     
    Skyrocket, Oct 16, 2015
    #21
  2. bigsky

    bigsky Active Member Silver Stacker

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    The last line in the article is the most important


    "The day they get it and perfect the finish a bit more, (their bills) will go undetected."


    Who is to say that they have not got it perfect already?,


    If it goes undetected, will we know how much currency fake and real is in circulation


    Does it really matter anyway, everyone else is just creating money anyway



    cheers grant
     
    bigsky, Oct 17, 2015
    #22
  3. JulieW

    JulieW Well-Known Member Silver Stacker

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    JulieW, Oct 17, 2015
    #23
  4. Ag bullet

    Ag bullet Well-Known Member

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    i watched that movie 12 months ago and yes it is interesting.
     
    Ag bullet, Oct 17, 2015
    #24
  5. tolly_67

    tolly_67 Well-Known Member

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    As mentioned earlier, resources play a big part in a countries ability to walk away from debt. Energy in particular is critical.
    Being locked out of the debt market means extremely high interest rates if you can find a lender.
    As for currency, it can be assumed that the nations spending far exceeds its income so it can either restruct and face revolution or print money and risk massive inflation. No oil exporting country will accept this currency so expect a revolution as a consequence.
    This is just the tip of the iceberg.
    Of course any country that successfully negotiates the treacherous path actually finds itself with the lowest interest rates as time goes by because it becomes the lowest risk as it has no debt.
     
    tolly_67, Oct 17, 2015
    #25
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