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Sorry if this has already been done, but the [url= http://singletrackmag.com/forum/topic/can-someone-explain-the-government-shutting-down-in-the-usa-thing-please ]can someone explain the government shutting down in the usa thing please[/url] thread has made me think again and its too late / I'm being too lazy to try google. So who is national debt owed too and what is to stop a country defaulting on payments? What would happen if the UK were to decide not to pay? Would Northern Ireland or Wales be repossessed?
That's got to be the most pointless reply ever.
The graph in the middle [url= http://www.washingtonpost.com/business/our-mountain-of-debt/2011/07/18/gIQAkh4FMI_graphic.html ]here[/url] shows who the money is owed to, although it doesn't really explain [i]why[/i] China would lend the USA $1.2trillion.
It would be interesting to see similar graphs for all countries.
I wouldn't be surprised if it all goes round in circles; USA borrows from China, China borrows from Japan, Japan borrows from UK, UK borrows from USA, or something like that
We owe money to many sources but mainly other countries. If interests rise and we couldn't service the debts then take a look at Greece to understand what would happen. Banks would freeze our assets, our pensions would be repossessed by the government, we wouldn't be able to access our cash. Our property prices would collapse, trade with our nation would cease as foreign companies would not be able to be paid. Our currency would devalue, we would have massive inflation with nothing on the shop shelves etc....
One thread is already running so I'm closing this one.