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Posted: 2/7/2006 6:45:03 PM EDT
[Last Edit: 2/7/2006 6:46:03 PM EDT by MillerSHO]
I mean really?

Can other countries that don't agree with the way we do or are doing things and have a leg to stand on because of the size of the loans we have out?

Are large debts to countries even allies good to have in a time of war?
Am I over reacting like a women here or do I have an arguement?

Regardless how you feel, we trade with all of these countries and some hold our debts....


Link Posted: 2/7/2006 6:50:10 PM EDT
[Last Edit: 2/7/2006 6:50:24 PM EDT by mikejohnson]
We give so much to the world yet many nations dislike us and act like NOLA - therefore who gives a fuck about our "integrity"? I think the next world war will result in wiping out our debt. This can be because we wiped out our creditors or just decided "f* them".
Link Posted: 2/7/2006 7:28:53 PM EDT

Originally Posted By mikejohnson: I think the next world war will result in wiping out our debt. This can be because we wiped out our creditors or just decided "f* them".
Yep. What we should do is selectively stop giving aid and stop making debt payments to "uncooperative" nations.
Link Posted: 2/7/2006 7:42:19 PM EDT
The problem is guys that the U.S. dollar is the world's reserve currency. You can only buy oil in greenbacks. That forces nations to hold large amounts of them. If the U.S. keeps going into debt (printing bonds that are bought by other nations), then the value of the US$ drops as the money supply expands, making those huge dollar holdings less valuable. The more debt that the U.S. generates, the more America is living beyond its means, and the less faith the world has in America's ability to repay the debt. Someone, somewhere, is going to say "bugger this for a joke" and dump their dollar holdings. If that starts a run on the dollar, then anyone left with US bonds are going to be screwed. However, because oil is denominated in dollars, and everyone needs oil, they can't just buy, say, Euros and ditch the dollar.

Its like standing in a room where everyone is holding a bottle of nitroglycerine. Nobody wants it, but nobody wants to start a panic by throwing their bottle away. So long as no one gets the shakes, everyone's safe.
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