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

systematic said:
The USD is THE number 1 currency in the world .... and someone already DID think of the children ....
Click to expand...


Not for much longer me think. It's days are numbered.
 
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
 
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.
 
You must log in or register to reply here.
Back
Top