Does country’s debts affect anything in that country? Why some have trillion dollars debts that look like it’ll never going to go away yet they can chill about this fact?
In: Economics
Debt is not a static thing. You need to pay it back, you pay the interest every year from your budget, and you sometimes need to pay back the debt itself.
Why the debt seems “rising” or keeping at the same value is because you usually take new debt to finance current operations or pay back the old debt.
For the most part unless you spend significant amount of money on “debt maintenance” or you have large debt chunk expiring suddenly, the debt value itself is harmless.
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