2006-06-15 17:07:07 · 5 answers · asked by Anonymous in News & Events ➔ Current Events
Just print more, that simple.
2006-06-22 02:32:42 · answer #1 · answered by CottonPatch 7 · 1⤊ 0⤋
Basically, it is due to the strength of the US economy. All deficits are underwritten by purchases of US bonds. As long as people (most purchases are by foreigners) continue to believe that the US economy is a good bet, and bonds continue to be purchased, the deficit will continue to not be a problem. That is, until the economy collapses, and payment comes due on all of the notes, and bonds for all these years. It is a gamble, but so far, the strength of the economy has tolerated deficits and will continue to do so until either:
1. the total deficit debt interest becomes unmanageable, or:
2. the US and world's economy collapses.
If there is a collapse of the world economy, i dont think anyone will be worrying about debt because everyone will be hurting too, and the govt might decide to pay the debt on the sly by economic means like artificial inflation.
2006-06-16 00:21:20 · answer #2 · answered by Miles W 2 · 0⤊ 0⤋
USA had a lot of GOLD bar reserved,oil reserved, treasury bills and liquid assets! It makes them the riches country in the world! I thinks deficit shows only the budget is not supported enough but those are fronts only!
2006-06-22 02:59:39 · answer #3 · answered by tutax 4 · 0⤊ 0⤋
The government can print up all the money they want. Ha! Ha!, they can't go bankrupt.
2006-06-16 00:25:19 · answer #4 · answered by Anonymous · 0⤊ 0⤋
it's a unlimited credit line...lol
2006-06-16 00:09:51 · answer #5 · answered by funlady6632@yahoo.com 6 · 0⤊ 0⤋