I’m a United States citizen. Moody gives the US a AA+ credit rating (it was downgraded from AAA in 2011).
How can this be, despite the substantial amount of debt the US holds that only continues to grow?
Is it GDP, defense capabilities, the dollar being the de facto currency almost worldwide? A combination of these? Or is there another huge factor(s) I am missing?
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Many people, perhaps yourself, are under a confused notion that for a country like the US that debt is somehow a problem. It’s not. It’s actually pretty good and generally stupid to not have some debt unless we reached some point where there was nothing to spend money on. Completely different game and completely different rules compared to individuals and credit lol.
Many people, perhaps yourself, are under a confused notion that for a country like the US that debt is somehow a problem. It’s not. It’s actually pretty good and generally stupid to not have some debt unless we reached some point where there was nothing to spend money on. Completely different game and completely different rules compared to individuals and credit lol.
It is written into the constitution that interest must always be paid on all of the nation’s debts. The US may have a lot of debt, but never once has the US missed a payment.
Zero risk of default. As the worlds reserve currency the US can turn to the printer in the worst case scenario.
Because the US, so far, never defaulted on its debt. And because oil is largely traded in dollars so there’s always demand for USD, which means demand for liquid instruments that can be turned into USD at short notice.
Zero risk of default. As the worlds reserve currency the US can turn to the printer in the worst case scenario.
It is written into the constitution that interest must always be paid on all of the nation’s debts. The US may have a lot of debt, but never once has the US missed a payment.
Because the US, so far, never defaulted on its debt. And because oil is largely traded in dollars so there’s always demand for USD, which means demand for liquid instruments that can be turned into USD at short notice.
It is written into the constitution that interest must always be paid on all of the nation’s debts. The US may have a lot of debt, but never once has the US missed a payment.
Becuase of the nuclear triad and the Navy SEALs. We can assassinate world government and business leaders and we can level entire countries. Push comes to shove, we will just rob the global coffers.
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