Monday, August 3, 2009

Can large public debt causethe bankruptcy of the government,making it unable to meet its financial obligation?

Can a large public debt cause the bankruptcy of the government,making it unable to meet its financial obligations? WHY?

Can large public debt causethe bankruptcy of the government,making it unable to meet its financial obligation?
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 !!
Reply: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 .
Reply: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.
Reply: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


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