That's not even close to what the US owe's to China, it's significantly less, you might want to do some research. The majority of the US government's debt is owed to the US Treasury/The Fed. It's called monetizing the debt, and we're pro's at it.
Contrary to popular belief, most sovereign debt is held by financial institutions - banks, pension funds, hedge funds etc. If it was simply a case of countries owing money to each other, the crisis would be much easier to solve.
The bonds become due for repayment by the Government on a certain date, so every day the Government will be paying someone the capital and interest on a loan from a few months earlier
The government raises taxes and new debt to pay off the debts incurred a few months ago
So it's not a lump sum of government debt - there are new debts being created every day and old ones being redeemed every day
If I tried to do that with my finances I wouldn't last very long:o
No. National debts are not owned solely or even primarily by other nations. Much if it is owned by individuals and corporations, often based within the same country that has the debt.
Japan is a good illustration of this. According to the IMF it is the world's most indebted country, but the creditors are Japanese households and corporations.
But when people in Britain say "Where's all the bloody money gone?", I would advise them to take a trip to the local dump and observe the rotting mounds of consumer "durables" and then, if they can afford it, fly to China and gaze in slack-jawed awe at the massive port complexes, skyscrapers, road networks and bridges. That's where all the money went. The bankers' bonuses pale into insignificance compared with the shift of wealth from west to east.
Japan is a good illustration of this. According to the IMF it is the world's most indebted country, but the creditors are Japanese households and corporations.
But when people in Britain say "Where's all the bloody money gone?", I would advise them to take a trip to the local dump and observe the rotting mounds of consumer "durables" and then, if they can afford it, fly to China and gaze in slack-jawed awe at the massive port complexes, skyscrapers, road networks and bridges. That's where all the money went. The bankers' bonuses pale into insignificance compared with the shift of wealth from west to east.
I think this is a great post and true - including the insignificance of the bankers' bonuses but who is responsible for the shift of wealth from West to East and who really profited from it if not our bankers and business leaders and of course China and India.
Comments
That's not even close to what the US owe's to China, it's significantly less, you might want to do some research. The majority of the US government's debt is owed to the US Treasury/The Fed. It's called monetizing the debt, and we're pro's at it.
If I tried to do that with my finances I wouldn't last very long:o
Japan is a good illustration of this. According to the IMF it is the world's most indebted country, but the creditors are Japanese households and corporations.
But when people in Britain say "Where's all the bloody money gone?", I would advise them to take a trip to the local dump and observe the rotting mounds of consumer "durables" and then, if they can afford it, fly to China and gaze in slack-jawed awe at the massive port complexes, skyscrapers, road networks and bridges. That's where all the money went. The bankers' bonuses pale into insignificance compared with the shift of wealth from west to east.
I think this is a great post and true - including the insignificance of the bankers' bonuses but who is responsible for the shift of wealth from West to East and who really profited from it if not our bankers and business leaders and of course China and India.