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.

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9
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5answers
3k views

What are the benefits of the proposed Euro/Corona bonds over conventional government bonds?

This article describes the efforts of several European Union countries to agree to issue "corona bonds" or "Eurobonds", which are a joint EU mechanism to issue joint debt shared between different ...
3
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1answer
536 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 ...
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10answers
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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 ...
14
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4answers
2k views

Implications of governments borrowing from a central bank rather than issuing money directly

Early in the history of the United States the political battle was fought between those who favored a strong central bank of the United States and others who felt the government reserved the right to ...
3
votes
1answer
229 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 ...
29
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4answers
16k views

Who was the last US President to oversee a reduction in debt?

As of 2012, the United States currently has ~16 trillion in debt. The last five presidents have all added to the overall debt*. Who is the last US president to decrease the total amount of debt ...
27
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3answers
6k views

Are there any negative consequences for a country having no debt?

It would seem that having no debt would categorically be a good thing. I have heard Dave Ramsey say many times that: The Forbes 400 is a list of the richest 400 people in America as rated by Forbes ...
24
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3answers
7k 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?
20
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2answers
4k views

How did the US bring down federal debt ratio after World War II?

I saw this infographic about the ballooning US Federal Debt-to-GDP ratio and how it might exceed WWII levels: https://www.bloomberg.com/graphics/2020-debt-and-deficit-projections-hit-records/ But I ...
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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2answers
8k 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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2answers
588 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 ...
18
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4answers
963 views

What are the practical effects of having too large a debt load?

My understanding is that Japan has a debt-to-gdp ratio of approximately 200%. It is considered to be one of the worst in the world. The United States is only in the 100% range. What effects would ...
16
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2answers
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
5k views

What is the debt ceiling and what happens if we reach it?

Over the past few years, there has been debate in congress as to whether or not to raise the debt ceiling. My question is simple(the answer to it might not be): What Is the debt ceiling, under what ...
7
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2answers
915 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 ...
6
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1answer
467 views

Did any legislation ever introduce something like the Chicago Plan?

The Chicago plan involves to impose a 100% reserve on banks, so that banks can no longer create money by lending out. Recently, IMF published a note called The Chicago plan revisited. I'm no economist ...
6
votes
1answer
424 views

What would the National Debt's minimum payment warning notice read?

The CARD Act modified what credit cards need to disclose to you on your monthly statements. One requirement was a Minimum Payment warning: Minimum Payment Warning: If you make only the minimum ...
5
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2answers
438 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 ...
4
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2answers
413 views

Is Hillary Clinton on the hook for the $30 million 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 Hillary Clinton has $30 million of debt from her 2008 campaign. ...
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 ...
12
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2answers
2k 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, ...
10
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1answer
358 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 ...
6
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5answers
398 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. ...