When you hear for example that Britain was in much debt after the Thirty Years War or Seven Year War or whatever, first of all WHO does it owe "money" to? , and why cant it just make its own "money" or steal it from whomever with its army? I just dont understand this.
2007-01-26 23:43:06 · 4 answers · asked by Charles R 1 in Arts & Humanities ➔ History
no country can sustain its own survival it has to borrow money and lend just like big banks
2007-01-26 23:49:49 · answer #1 · answered by Snot Me 6 · 0⤊ 0⤋
A lot of this is to do with reparations, ie. we bombed the hell out of Germany twice but then had to help them rebuild, Its kind of like compensation for the innocent people of a country dragged into a war. To answer the later part of your question, Saddam Hussian tried to "steal" what he wanted from Kuwait (Oil fields) and the consequences have been on the news for the last 16 years.
2007-01-26 23:52:19 · answer #2 · answered by jim G 2 · 0⤊ 0⤋
We could've printed more money. But that would've just fuelled inflation. Sort of what happened in Germany after WW1. Inflation went through the roof and more and more money had to be printed to keep up. A loaf of bread cost a huge amount of money. You'd need a wheel barrow to carry your wallet around.
The value of money is tied into everything else.
2007-01-26 23:49:20 · answer #3 · answered by 👑 Hypocrite 7 · 0⤊ 0⤋
Paper money only has value if there is something to back it. It used to be in the US that we had the "gold standard" where there was real gold to back all the paper money floating around. If a country was to print a ton of money to pay for a debt it would devalue its currency and cause gross inflation.
2007-01-26 23:47:55 · answer #4 · answered by Bunger 2 · 0⤊ 0⤋