That's the basis of a debt based economy. Developed nations lend money to the underdeveloped nations and this debt is considered as an asset for the lender nation while it's a liability for the borrower. So now if the borrowing country fails to repay the debt, that's when it brings a challenge to the lender country. No country can print money out of thin air. That needs to be justified by the money they have lended.
If any country fails to pay the debt, that when the economy and currency value of the lender country faces the turmoil. So far, US stayed at the top of the game and India is one of their important ally in Asian region. The amount is high but India has the capacity to repay the debt.
Topic: Why is developed nations asking money from other nations? - page 2. (Read 196 times)
Sit back and relax, they just gonna print more, that's what they are good at. Printing strategy seems to work so good that they will print again some 1.9 trillion.
Those printers are busy now so those countries have to wait until their turn comes.
Just a note here. Printing USD makes the BTC more expensive, so buy bitcoin until it's cheap.
Those printers are busy now so those countries have to wait until their turn comes.
Just a note here. Printing USD makes the BTC more expensive, so buy bitcoin until it's cheap.
This is the case of USA
It's not just China and Japan but also the developing countries like India. Now My question is : Do they understand the fact that these countries are suffering more than them and they might need it more ?
Or are the companies which are giving them loans using them as a leverage to use them if some War erupts. But either way it's something very weird and something that I do not understand.
USA is far stable when compared to these countries and instead of letting their dollar value fall they are honestly asking loans. Which am preety sure is where the sanctions are coming from to the public.
What do you guys think ?
Is this normal? Is the value of USA economic,'s situation indeed their real market value? Is this even healthy for the long run ? They might soon take steps towards their bubble economy.
Quote
The US, the world's largest economy, owes India $216 billion in loan as the country's debt grows to a record $29 trillion, an American lawmaker has said, cautioning the leadership against galloping foreign debt, the largest of which comes from China and Japan.
source: googleIt's not just China and Japan but also the developing countries like India. Now My question is : Do they understand the fact that these countries are suffering more than them and they might need it more ?
Or are the companies which are giving them loans using them as a leverage to use them if some War erupts. But either way it's something very weird and something that I do not understand.
USA is far stable when compared to these countries and instead of letting their dollar value fall they are honestly asking loans. Which am preety sure is where the sanctions are coming from to the public.
What do you guys think ?
Is this normal? Is the value of USA economic,'s situation indeed their real market value? Is this even healthy for the long run ? They might soon take steps towards their bubble economy.
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