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Re: The richest countries the deepest/farthest in debt, why?
Modern banking and monetary system........it survives on debt......you have to see the documentary 'zeitgest'....explains the cycle very well.
Re: The richest countries the deepest/farthest in debt, why?
http://asiancorrespondent.com/indianomics-images/wp-content/uploads/2009/06/national-debt.gif
To be fair the whole world is in debt maybe except for China.
Re: The richest countries the deepest/farthest in debt, why?
The richest countries are the most in debt because they can.
No one will give a big loan to a poor country, because it's unlikely that the poor country will be able to pay it back, and because these countries have political systems that are unlikely to invest the loan productively so that they are able to pay it back in future.
Rich countries, on the other hand, find it easy to get loans because they have the money to be able to pay them back. Also, these countries generally have political systems that are less corrupt, and therefore it is more likely that a loan will be invested by these countries in a way that improves their ability to pay it back.
So essentially, if you are a rich country, it is easy to get a big loan and thus be able to spend like an even richer country.
Re: The richest countries the deepest/farthest in debt, why?
It is like, if your company have healthy reserves and sound track record, banks will provide finance for your projects and if your company is performing bad, then the same banks will be the first to ask its money back...
Re: The richest countries the deepest/farthest in debt, why?
Poor conutries probably also have more corrupt politicians in charge. So they probably are a party to predatory lending practices by the IMF. Which leads them to go deeper into debt - much as a poor guy finds himself while dealing with loan sharks.
With interest rates low, rich countries get cheap money. They are also controlling the interest rates at a low level, and are also printing money, so they pay off interest with cheap money.
My two paisa's worth as a non-economist. You get what you pay for.
Re: The richest countries the deepest/farthest in debt, why?
American is in 14 trillion debt.
Re: The richest countries the deepest/farthest in debt, why?
Except for China, almost every country is in debt. Dont most of this debt just cancel each other out? Never figured that out. (No doubt some economic types here have an answer - look forward to it).