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
Because for the debt to become troubling, you’ve got to have a creditor who’ll be persistent in requesting the money from you.
Now, trillion dollar external debts are about countries like USA, France, Germany, Japan etc.
Who’ll be the creditor who comes at them and says, hey, give me my money back? Pretty much no country can do that.
Those who can, have large external debts as well. If they ask for their money as creditors, they’ll be the next to be asked to return debt.
Debt is bad when you are a private investor who lost all your student debt on options gambling. The government will require the money that you owe.
When you are among top 10 world economies, external debt is fine. Until it’s not, but the “until it’s not” part may not set in any time soon.
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