We all know that the USA is heavily in debt ($16 trillion worth of US government treasury bills and bonds) but why haven't the county collapsed under its debt yet or at least undergo a period of pain like what happened in Greece?
So I did a little study of my own, the difference between the US and Greece is that the US prints their own money while Greece cannot, having surrendered their monetary policy to the European Central Bank.
Another important thing I like to highlight from here is that US debts are denominated in US dollars and the US Government is the only sole supplier of US dollars by the virtue of its printing machine. Maybe that explains why the US have yet to collapse like that of Greece. So now the question is; "can a country goes bankrupt from debts denominated in a currency it prints?"
This is just my opinion, it would nice to hear inputs from the rest of us here.
So I did a little study of my own, the difference between the US and Greece is that the US prints their own money while Greece cannot, having surrendered their monetary policy to the European Central Bank.
Another important thing I like to highlight from here is that US debts are denominated in US dollars and the US Government is the only sole supplier of US dollars by the virtue of its printing machine. Maybe that explains why the US have yet to collapse like that of Greece. So now the question is; "can a country goes bankrupt from debts denominated in a currency it prints?"
This is just my opinion, it would nice to hear inputs from the rest of us here.
"Nature's law" is called "Reason". When perfectly understood by human it is