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Works like a charm until the money has to be repaid.
by AlexTWithBeard 7y ago
Works like a charm until the money has to be repaid.
- howard941 7y agoDoes the charm last when it's never repaid? See for ex https://www.theatlantic.com/business/archive/2013/02/why-the-us-government-never-ever-has-to-pay-back-all-its-debt/272747/ https://www.theatlantic.com/business/archive/2013/02/why-the... Contra: Before the dot com crash and 9/11 some non-lunatics were worrying that Treasuries would go away and there'd be no safe place to store money because all the debt looked like it was going to be paid off before too long.
- AlexTWithBeard 7y agoSaying that the countries do not die, as the referenced article suggests is not right: states do disappear every once in a while. Yes, their lifespan is usually longer than for humans a but it's not infinite. But even looking at mortal humans: in 2008 many of them have realized that no, it's not possible to keep borrowing indefinitely. Some day the creditors may ask for their money back. Some people suggest we'll just print the money we need. The problem is that now I can take this money and buy half of your country before you realize what's going on.