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?

Question

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

Answer 1

If you need money, you can borrow money. People will lend you money, if they think they’ll get it back.

Now the US may have trillions in debt, but nobody thinks they won’t pay back. So they keep lending and things are fine.

Now a different country, perhaps war-torn, perhaps with an erratic dictator, that may or may not decide to pay, or may or may not be assassinated next week by an ursurper that may or may not pick up his predecessors debt may just have a tiny amount of debt, but nobody will lend them money, because they think they won’t get it back.