How can anyone collect the national debt?

Question

How can anyone say anything to America? Why doesn't the American Government just tell all the people it owes to pound salt. They can just bully them, and say NO! I'm not paying. Strong arm everyone.

Answer 1

Yes, I suppose we could do that; however, much of that debt is foreign. Our economic system would fall. Our currency would have no value internationally and no country would accept our exports. Also, no country would send imports to us, unless we paid with gold or hard currency. That would be hard to get without exports.

On a one dimensional view, it might seem good to someone with little knowledge of international economics, but when you have such knowledge and consider all the consequences, it is really, really dumb.

Answer 2

Well long story short, the government has no intention of paying off the national debt. National debt basically means that the citizens of the country (you and me) have incurred the debt. It's not the country in debt but citizens of the country that are in debt. (National debt = country debt plus personal debt.)

This basically means that if the debt becomes so huge that the assets of the entire nation is less than the national debt, IMF and World bank will declare the nation "bankrupt" as in the case of South Korea, Turkey, and Argentina.

If such a thing happens the government will basically "sieze" all assets of the "people" and take it away from you as a "collateral" for the "national debt". But like I wrote, the national debt is citizens' debt. So no one can really complain.

In such a case, the government will basically tell you that "you used to have a good life, but that was all based on borrowed money, so pay up".

In a sense they are right after all, the infrastructures of the society is made by the government.

But on the other hand, if they opted to do something as seize property to pay off the debt, it would be dictatorship or worse, totalitarian. But then again who would you hold responsible? The current president? He's only going along with the flow. All politicians are crooks. They know very well that no none can pinpoint the problem to anyone, which is why they go along with the flow. After all the flow allows them to be rich.

I'd say all presidents after Jackson are all responsible. Jackson knew the perils of allowing banking to control the society and did his best to keep banks out of government activities. But all politicians know that they can only make money and live lives of hogs if they incorporated banks and government activities.

There you go, a very short history in econ and finance.

Hope it makes you feel better! You're a part of the national debt! LOL!!!!!

Answer 3

Regaining control of the national deficit, not to be confused with the trade deficit, will require a shift of thinking in modern politics. It will likely be forced upon us as a nation when our collective consumer and governmental debt reach a point at which repayment becomes unlikely. Jockeying the interest rates and controlling inflation are only a bandaid over the problem. We must start producing (in saleable goods or services) more than we consume. Otherwise, how can we save any money to pay off prior debt. I'm with you, let's tell everybody else to pound salt. We should tighten up the southern border, bring back american jobs, import fewer goods and services from foreign countries and start producing our own goods again. Only problem with that is American's want cheap stuff at Wal-mart. I'm guilty too, let's face it why pay more if you don't have too. Eventually, we will have to foster an family/cultural environment based less on what we can accumulate and more on how to improve the quality of our lives
(not just economically) This of course will never happen until we are forced to do so (as was the case in post depression era culture)

Answer 4

Because most of the debt is owed to foreign countries, china and the far east. Their banks have been purchasing us treasury bonds for years. If they wanted to they could demand payment of them. The US doesn't have the money, this would cause a massive collapse in the financial markets. Now those countries are shifting into durable goods and materials as they have intrinsic value, unlike the currency (which used to be backed by a gold standard).
That's a really boiled down version anyway.

Answer 5

This is one of the most overstated economic issues of all time. This, so called, national debt is actually the result of many other countries investing in America by purchasing Treasury Bonds. Just like you buying them. They are seen as a safe way for other countries to invest their money . If those countries were to suddenly make a "run on the bank" it would only serve to destroy their own economies. If the value of the dollar drops significantly as a result, they will loose a fortune.

Would you prefer that they invest their money in other countries?

.

Answer 6

As soon as we try something like collecting on a debt that is rightfully ours, the liberals will scream and cry that the Bush administration is treating the rest of the world unfairly.

Answer 7

what is the national debt ? Who do we owe and why? Seems like we take care of other people before our own. we have needs here too, I see it everyday.

Answer 8

Government must stop spending unnecessarily in order not to borrow money from other countries at the expense of citizens who are burdened by taxes.