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re: International finance guys...question about world debt
Posted on 10/12/17 at 11:50 am to roadGator
Posted on 10/12/17 at 11:50 am to roadGator
Mostly because the governments don't lend the money, individuals buy up bonds as an investment. Basically the governments borrow money from the people.
The point at which it will crash is when the government becomes so indebted that it cannot make interest payments on the bonds. So then investors lose confidence, the bonds become worthless, and the Govt cannot borrow any more money
The point at which it will crash is when the government becomes so indebted that it cannot make interest payments on the bonds. So then investors lose confidence, the bonds become worthless, and the Govt cannot borrow any more money
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