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Questions tagged [debt]

Questions related to the accruement of debt, may it be a nation, organization or person in a political landscape. Use this tag alongside the relevant tag in the context of the question i.e. a country if necessary.

6
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3answers
346 views

Why does Berlin have debt issues in opposition to many other European capital cities?

According to this article Berlin seems to be a strange capital city when it comes to debt: In almost every European country the capital is the engine of the economy. But a new study shows there ...
-1
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1answer
78 views

Causes of a sovereign debt crisis?

What are the causes of a sovereign debt crisis? How can countries get out of a sovereign debt crisis?
2
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2answers
172 views

Could Italy's need to finance its public debt be a menace for the EU?

In the following article Italy’s populists turn to Trump and China it appears that Italian government is now seeking new alliances outside Europe to finance its debt, given that the ECB is coming to ...
5
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5answers
592 views

How long would it take to pay off the U.S. national debt if new deficits were eliminated?

If Congress stopped borrowing money, how long would it take to pay off the national debt? My question assumes—perhaps incorrectly?—that every dollar the Federal government owes must be paid back on ...
4
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5answers
623 views

If Jim, a random citizen, owes TD Bank $300,000 for his house mortgage, is this added to the U.S. national debt?

According to Wikipedia: National debt consists of two components. The first is Debt held by the public, such as Treasury securities held by investors outside the federal government, including ...
58
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10answers
16k views

What will happen if China stops loaning money to the U.S.?

US's external debt to china is a staggering 1.1 trillion US dollars and according to many economists, it's highly unlikely that U.S. will be able to pay back the entire external debt to China in the ...
4
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1answer
133 views

Does the US constitution have a clause/procedure for defaulting? [duplicate]

Current US debt stands at 20+ trillion. Is there there a clause or rules/procedures on defaulting in the US constitution? If so, how are the distribution of assets and liabilities handled?
47
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3answers
8k views

Do separatist nations inherit any national debt?

Do separatist nations inherit any national debt? For example, given Spain has a debt level of £1.1 trillion at the time of writing, if Catalonia becomes an independent nation is there any legal ...
1
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7answers
3k views

Can a country sell part of its land to pay off huge national debt?

I know that in history, countries have sold certain parts of their territories to other countries. If a country is in massive debt today, and they feel there is no way they can get out of it, and the ...
16
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3answers
2k views

How do Democrats “gain leverage” by a three month debt limit increase?

I'm trying to understand some of the comments in the press that Democrats have gained leverage by the three-month extension tied to hurricane relief. This is what I don't understand - it seems to me ...
10
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4answers
3k views

What are the stated downsides of allowing to default on college loan debt?

There are political positions in USA who advocate that people should be able to default on college loan debt (with the status quo being that it's very hard if not impossible to do so right now). What ...
3
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4answers
829 views

The US has done lots of Quantitative Easing, so why does it not do the same for its debt?

The US government owes lots of money. When US-based banks and other financial institutions faced a similar problem (ok, not a similar problem, but a crisis) - the US government, through the Federal ...
5
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2answers
577 views

Why did Japan not raise taxes instead of borrowing to avoid having such a large debt ratio?

According to this article, Japan reached an enormous debt/GDP ratio of about 250%. The first two answers from here illustrate more about the structure of the debt. My highlights are: most ...
21
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1answer
6k views

When a government pays centuries old debt… who exactly is it paying?

I was watching the Extra Credits series on the South Sea Bubble. In there they say that the UK is still paying off the debt from the incident. However, given how old the debt is, I have to ask: who ...
5
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5answers
383 views

What steps can be taken to combat unfunded state and federal pension liabilities in the U.S.?

It's the growing problem that no politicians want to talk about: unfunded pension liabilities. Business Insider ran an article last year which focused on the many upcoming challenges facing U.S. ...
20
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4answers
5k views

What are the overall aims of UK austerity, If the UK national debt has nearly doubled since it started?

The Opposition forced a vote for today on the end of austerity measures (not all) in regards to pay cap on public sector jobs. (The vote also includes pay rises for emergency services and the ...
16
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3answers
3k views

Who is lending the money for a nation's debt?

It seems most governments (certainly the US, Europe, Australia) have racked up a national debt - but who are the lenders that these governments are indebted to? Where does the government get the ...
2
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0answers
304 views

If the US decided to inflate its way out of their debt, what would the value of the dollar drop to? [closed]

Hypothetically, what would the value of the US dollar drop to if the US government decided it wanted to inflate its way out of their national debt all at once? Would it simply be: M2 money supply / ...
96
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9answers
36k views

Why is Greece's debt considered a problem but not US debt, which is much larger?

Greece's and other southern European countries' debt has been considered a problem since the 2008 crash, and austerity measures have been forced to the people. However the United States also have a ...
12
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3answers
3k views

Why does Russia have such a small debt (debt to GDP ratio) compared to the vast majority of Western countries?

This chart shows that Russia has a very low debt/GDP value compared to most of the other major countries. Quora answers indicate pure economical reasons (huge amount of natural resources and ...
23
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3answers
6k views

What is Trump's plan to get the United States out of trillions in debt?

The debt is now close to 20 trillion dollars. What are Trump's main strategies to reduce this debt?
7
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2answers
528 views

Why is it so hard to compute the EU-UK divorce bill?

I have just seen on TV a few highlights from a heated debate on the divorce bill involved by Brexit. According to this source: European leaders have warned the UK that it will face a divorce bill ...
4
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2answers
539 views

Why focus on reduction of public debt when private debt is much larger?

According to the OECD, in The Netherlands, public debt is 78% of GDP and private household debt is 277% of GDP. Eurozone rules require a budget deficit of no more than 3% (not sure if this depends on ...
9
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2answers
1k views

What's the most accurate account of the current President's monetary debts?

The President owes some money. In 2016 Fortune estimated he owed $1.1 billion. Last December Mother Jones estimated he owed over $700 million, not including $2 billion in debt by real estate ...
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2answers
299 views

Get rid of national debt from excess campaign funds

Say there was a law that limited how much a presidential candidate could spend during the election process per month all/most of the campaign money isn't used (According to this article there isn't ...
8
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2answers
209 views

Eurozone countries surpassing their allowable deficit of 3% GDP

What happens when a eurozone country breaks EU fiscal rules that limit the allowable deficit to 3% of GDP?
4
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2answers
299 views

Can Americans use national debt holdings to pressure the government?

67.5% of US debt is held by the US citizens and entities. Does that in any way give US citizens and entities leverage to economically or legally pressure the federal government into taking or not ...
3
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1answer
279 views

Is Hilary Clinton on the hook for the 30m$ debt of her campaign?

In Why do US politicians spend so much on campaigns when the salary is not high enough to justify the expenditure?, it is mentioned that Hilary Clinton has 30m$ of debt from her 2008 campaign. One ...
18
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3answers
3k views

Why do governments still assume that “the more land, the better”?

There is constant political struggle for land between two or more nations around the world, where two different countries claiming to own a land area even though another country controls (or "occupy") ...
16
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4answers
2k views

What's the purpose for a country to maintain a large public debt?

Many countries keep a national debt over 50% of their GDP every year, including first world countries. They owe each other and also to banks, companies and households. As I understand, it wouldn't ...
10
votes
1answer
243 views

What were the exact debt relief terms for Germany in 1953?

I read the Wikipedia article about the London treaty but it doesn't give me a bullet list with the exact concessions made and the terms. Such a list would be perfect to understanding what exactly ...
16
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2answers
6k views

What happens if a country becomes bankrupt?

What happens to the citizens of the country? What happens to the sovereignty of the country? What happens to the neighbors? For example, what will happen if Greece becomes bankrupt?
5
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3answers
584 views

Is the $210 trillion fiscal gap measurement valid/true and is it possible to fix it?

Laurence Kotlikoff says the fiscal gap is $210 trillion. Wikipedia defines "fiscal gap" thusly: The fiscal gap is a comprehensive measure of a government's total indebtedness. Proposed by ...
6
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2answers
513 views

What reasons does Argentina have to participate in US court proceedings against it in the debt crisis?

Argentina defaulted and restructured its sovereign debt in 2005 and again in 2010. Roughly 93% of bondholders accepted repayments of around 30% of the face value of the bonds. Some of the hold-outs ...
1
vote
1answer
570 views

When will the US hit the debt ceiling again?

After the debt ceiling showdown of October 2013, the US debt ceiling (basically the total amount of outstanding debt the US is allowed to have at a time) was suspended from October 16, 2013 until ...
-2
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3answers
532 views

What foreign investment is safer than US Treasury bonds and what market share do they have?

Considering the fact that the US collects ten times the revenue it needs to pay interest on the debt, do foreign countries have a safer alternative to US Treasury bonds? Whether or not the debt ...
3
votes
1answer
422 views

What exactly are the formal rules around US paying off debt?

Is there a precise set of rules (e.g., very specific law, or court ruling?) that explains what specifically does - or does not give the US executive branch the right to choose to default on specific ...
8
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2answers
320 views

Is it true that the United States currently has no debt ceiling?

This article states that the debt ceiling was not raised in the deal enacted 2013-10-17, but rather that it was suspended allowing effectively unlimited borrowing until 2013-02-7. Is this accurate? ...
3
votes
2answers
240 views

If Congress refused to raise the debt ceiling, would it force the federal government to balance its expenditures/revenue?

The US continually increases the debit ceiling whenever it is reached. It has been raised over 30 times in the last 30 years. The debt ceiling as explained by the Government Accountability Office is: ...
1
vote
1answer
455 views

How many times has the US defaulted on its debt?

I have heard that it would be an unprecedented occurrence, and that it has never happened. If Congress refuses to raise what’s called the debt ceiling, America would not be able to meet all of our ...
6
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1answer
242 views

Has any government made the unwinding of their US bonds and currency reserves a core public policy plank or a legal requirement?

The betting odds (at time of writing) on a partial US debt default this year were 6/4 - Default and 1/2 - No Default. Considering the odds, this is something of a wake-up call for nations and ...
0
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2answers
269 views

How much in interest payments since 2002 has the increase in the debt past the old debt ceiling cost the US?

Wikipedia notes several recent changes to the debt ceiling. Increases in the debt ceiling allow the Treasury to borrow more money and increase the national debt to a level higher than previously ...
4
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2answers
360 views

Is there legal recourse for creditors if Treasury defaults on any (not necessarily all) of its debts?

This is a follow up to a previous question I had here Fed Authority I understand that once the government goes into default it triggers a number of different legal steps and procedures, such as CDS ...
5
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1answer
143 views

Is the US Government being shut down affecting the deadline for the debt ceiling?

The US government is shut down, and has been for one week as of writing. The government is also supposed to require a debt ceiling increase by Oct 17, or else the government will fail to be able to ...
12
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3answers
2k views

Why did Russia default on its domestic bonds in 1998 when it could simply print money?

Russia defaulted on its domestic debt in 1998. It did not have to do so because the bonds were denominated in Russian Ruble and the government could simply have printed money to pay the bonds. Why ...
1
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2answers
144 views

If the US Debt Ceiling is not raised what happens to Mandatory/Discretioary spending? [duplicate]

Since Obama took office there have been repeated fights over raising the US Debt Ceiling. The Treasury Secretaries have said that for a short period of time they can 'juggle money around' to keep the ...
22
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3answers
3k views

Why did the U.S. government shut down, if the Fed was providing funding through the bond buying program?

I understand that the current Federal Bond Buying program ($80 billion a month) is allowing a fixed supply of money to the American Government. If this is the case, then why did the government "shut ...
5
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5answers
757 views

What are the guarantees that international debt will be payed back ever?

Related: Are there any negative consequences for a country having no debt? Why would a country ever allow another country to be deeply in debt to the first one? Why not just stop exports at the ...
3
votes
1answer
224 views

What effect does state-level refusal to accept the ACA's medicaid expansion have on the ACA's cost?

The Affordable Care Act ("Obamacare") was projected by the Congressional Budget Office to reduce the national deficit. When Obamacare went to the Supreme Court, the court ruled that it was ...
12
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2answers
1k views

Where did all this deficit come from?

Back in 2008, the deficit was somewhere around $200 billion, until the bank bailout, which was reported at first to be a 1-time bailout of $800 billion. The next year, there was the Stimulus package, ...