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Reply #4: Good question [View All]

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Home » Discuss » Archives » General Discussion (Through 2005)

La_Serpiente

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Thu Nov-13-03 01:51 AM
Response to Original message

4. Good question

What happens is that when we borrow money, we take if from foreign governments. Countries like China provide us bonds I believe and then we usually just pay the interest off of it.

What does that mean? We are now hostage to European countries and Japan and China. If the US was getting too powerful or pissing off too many people, they could call the loans.

What would happen? Well, our taxes could skyroket, our currency could devalue, or we could go into default, thus screwing up our credit rating.

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