Comments on: How does a nation go bankrupt ?

By: Filip

Filip — Sun, 19 Jul 2009 22:47:41 +0000

It’s a tough question…

I guess you’re speaking about developed economies in general.

It is hard to define it exactly, but one can say a country goes bankrupt when it can’t repay it’s debts anymore.

Nobody can take away everything one country has, but this event would have severe impact on countrys economy.

How? Borrow more than you can repay- US mortgage crisis perfect example.

Run enormous deficit each year- US is perfect example.

Sell your debt to China, Japan, rich Euro countries- US is perfect example. They buy more and more debt, because they have savings, while in US, savings are history.

There are tables with national savings, per country, you can see US citizens have very little savings…in well-run economies, citizens have savings.

By: Raj G

Raj G — Sun, 19 Jul 2009 19:35:07 +0000

A nation that prints its own money can’t go bankrupt. The national debt could essentially be eliminated overnight by simply increasing the supply of dollars and paying of debts. However, that increased supply of money (without a corresponding increase in production) would lead to rapid inflation that would essentially devalue the property of Americans to the point of poverty.

By: is it 5 yet?

is it 5 yet? — Sat, 18 Jul 2009 07:26:11 +0000

A country can’t really go bankrupt, but it can get to the point to have such poor credit that it has a hard time borrowing.

If you want to see a current example read a little about Zimbabwe. Once a relatively prosperous african nation, now has inflation so high it can not be calculated (over 8000%), food shortages, despite once being an exporter of food. Sad, but that is what happens to a nation in bankruptcy.

And the US is not even close to that, but that is no excuse to get worse rather than better, eh?

By: jackie

jackie — Thu, 16 Jul 2009 03:02:44 +0000

just watch our country, USA. we are the perfect example of a country going down the tubes, into bankrupt USA.

By: David Chan

David Chan — Tue, 14 Jul 2009 13:32:13 +0000

A country at the end of its resources, exhausted,stripped bear, destitute, bereft, wanting in property, or wrecked in consequence of failure to pay its creditors is defined as bankrupt .
Interesting?

By: hazeleyedbeauty1967

hazeleyedbeauty1967 — Sun, 12 Jul 2009 12:29:26 +0000

Let Bush take over and just sit back and watch!

By: Trout

Trout — Sun, 12 Jul 2009 02:58:00 +0000

I suppose the same way a person does

Willie Nelson should not have gone bankrupt (maybe he is a bad example but he was rich ) but he did

There have been other examples of very wealthy people with huge incomes and even bigger out go’s – that equation seems to work no matter what

It is therefore the ratio of spending to income as opposed to the numbers themselves

10 dollars in 11 owed = bankrupt as much as

50 Trillion in and 51 Trillion owed

By: tixtix

tixtix — Thu, 09 Jul 2009 16:33:43 +0000

when we are 10 trillions in debt and counting…

By: fair_fun

fair_fun — Mon, 06 Jul 2009 06:01:49 +0000

Ask Bush!!!! he’s the pro…
sw

By: sarabrooke27

sarabrooke27 — Thu, 02 Jul 2009 21:09:37 +0000

by electing Texas republicans for president.