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Yavin4

(35,421 posts) Mon Jan 7, 2019, 12:27 PM Jan 2019

Brexit Question. What if, after the separation from the EU, the UK defaults on its debts?

Wouldn't that trigger another global recession/depression? Defaults tend to cascade. Or, am I just being paranoid?

4 replies

= new reply since forum marked as read

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Brexit Question. What if, after the separation from the EU, the UK defaults on its debts? (Original Post) Yavin4 Jan 2019 OP

Probably zipplewrath Jan 2019 #1

There are people around the world that own their debts Yavin4 Jan 2019 #2

Yes zipplewrath Jan 2019 #3

Are you referring to specific debts to do with EU membership, or just debts in general? muriel_volestrangler Jan 2019 #4

zipplewrath

(16,646 posts)

1. Probably

Reply to Yavin4 (Original post)

Mon Jan 7, 2019, 12:51 PM

Jan 2019

But why would they do that? Its debts are theirs. Why would they default on them? It'd ruin their economy at a time when it's already going to be a mess.

Yavin4

(35,421 posts)

2. There are people around the world that own their debts

Reply to zipplewrath (Reply #1)

Mon Jan 7, 2019, 01:03 PM

Jan 2019

If the UK doesn't pay on its debts, then those debt holders will also default on their obligations.

zipplewrath

(16,646 posts)

3. Yes

Reply to Yavin4 (Reply #2)

Mon Jan 7, 2019, 01:06 PM

Jan 2019

By why would the UK not pay on its own debts and ruin their own economy for years if not decades to come?

muriel_volestrangler

(101,266 posts)

4. Are you referring to specific debts to do with EU membership, or just debts in general?

Reply to Yavin4 (Original post)

Mon Jan 7, 2019, 01:52 PM

Jan 2019

If the latter, I don't see what difference EU membership makes. FWIW, the UK has a good record on paying back national debts.

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