What collateral does the US use to guarentee national debt?

Answer 1

The US uses the faith and credit of the government to secure the debt.

This works because the government pays its bills. Other countries, such as those that may have a high likelihood of having a revolt or some other transfer of power where a new regime may deny the debts of the old might have a problem going into debt without collateral.

Answer 2

in all probability no longer. we had a brilliant gamble to start paying it down whilst the GOP congress tightened up the handbag strings on clinton and at the same time they produced a surplus. then the wheels got here off the wagon. the liberals had to extend social spending, and the conservatives needed a tax shrink. (i presumed paying off debt FIRST replaced right into a fiscally 'conservative' theory, yet i think i replaced into incorrect.) enable's be truthful approximately issues, although: 1980 - national debt - approximately 900 billion the reagan years 1988 - national debt - approximately 2 trillion the bush the 1st years 1992 - national debt - approximately 4 trillion (are we seeing a trend right here?) the clinton years 2000 - national debt - approximately 5 trillion (some 25% develop as unfavorable to the previous a hundred% will develop) the bush the 2nd years 2008 - national debt - 11 trillion the place replaced into the fashionable republican economic conservatism?

Answer 3

The value of out economy - no collateral per se, just the word of the US that it honors its obligations.

The annual deficit is about 1 or 2% of GDP. That's very low in relative terms.

Answer 4

Gold Reserves, Ft. Knox, Kentucky

Answer 5

there is no collateral given for government borrowing. It is akin to borrow in unsecured loans kinda like with credit cards for people.

Answer 6

National debt includes the personal debt of citizens, so part of it is your mortgage secured by your house. Government spending debt is unsecured.

Answer 7

Working peoples,"sweat"