need fast large amounts of money in your country? offer out bonds.
other countries (or corporations) buy the bonds, giving you spending power.
bonds mature and have interest. and must be bought back someday.
not the same thing as a loan, but its basically the same kind of dept.
if the world's largest consumer country (US), inflates and owes to much money.
the entire world suffers from the hurt currency.
owing to much dept = bad inflation
thats why i find it funny non Americans love to bash the states so much for the US's problems.
when they rely on us so much for their own economy. you would think they will be crossing their fingers for us. as their economy needs us.
there is a limit we set to how much we are allowed to borrow. to cover our own ass.
well we raised our limit every year for a decade because we spend to much we cant even afford our own government services.
we can default on ourselves if we cant borrow more, and we cant pay our bills at the same time.
the result would mean we are less credible in the future to borrow money from the world.
