Chris.PelleyMoore Posted November 3, 2015 Share Posted November 3, 2015 National debt is a concept that lots of people are aware of. However, debt typically implies a lender. Stefan talks a lot about unfunded liabilities. Does this mean the debt is structured in an atypical way? If not, who is all the national debt owed to? Link to comment Share on other sites More sharing options...
thebeardslastcall Posted November 3, 2015 Share Posted November 3, 2015 Unfunded liabilities are what seem to lead to these persistent needs for a debt ceiling raising, since they need to be able to keep borrowing more and more money to cover the obligations they've already committed themselves to, but didn't have the money for yet (borrowed or taxed). The debt is owed largely to the Federal Reserve, then China and Japan are the next biggest. Link to comment Share on other sites More sharing options...
RCali Posted November 3, 2015 Share Posted November 3, 2015 Could you explain why they would borrow from other countries, if they could just print more? Link to comment Share on other sites More sharing options...
AncapFTW Posted November 3, 2015 Share Posted November 3, 2015 Could you explain why they would borrow from other countries, if they could just print more? printing more leads to inflation. Borrowing from other countries doesn't, as it doesn't affect the exchange rate between your currencies. Link to comment Share on other sites More sharing options...
thebeardslastcall Posted November 3, 2015 Share Posted November 3, 2015 Yeah, basically it's a more stable way to farm without exploding the currency with inflation. Helps limit themselves from overdosing on their drug of choice, counterfeit money, which would kill the animals and ruin the farm. Also when the farmer base is spread around a bit more it keeps the powerful people in different countries a bit more linked and bound and less likely to engage in overt warfare with each other since they share the same farms. Link to comment Share on other sites More sharing options...
Chris.PelleyMoore Posted November 3, 2015 Author Share Posted November 3, 2015 All countries including China are in massive debt (maybe Switzerland isn't, not sure). The federal reserve may be the lender for the United States (either wholly or partially). So what about Canada, the UK, Japan, etc.? Link to comment Share on other sites More sharing options...
Mister Mister Posted November 4, 2015 Share Posted November 4, 2015 Could you explain why they would borrow from other countries, if they could just print more? Yep, it's the difference between a dairy farmer buying shares of another dairy farm, and watering down the milk he sells. Link to comment Share on other sites More sharing options...
Recommended Posts