• macniel@feddit.org
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      2 days ago

      and yet a country has to pay back debt (hi greece) and when they can’t they are bankrupt.

      • village604
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        2 days ago

        The USD is a fiat currency. They can just print more to pay back the debt.

        It would cause inflation, but they can’t go bankrupt.

        • macniel@feddit.org
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          2 days ago

          sure its fiat currency, but other countries don’t have to accept it when its less worth than the paper the money was printed on.

          • village604
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            2 days ago

            The majority of the US debt is held domestically.

        • Archangel1313@lemmy.ca
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          2 days ago

          The amount of money they would need to print in order to pay it back, would cause the kind of inflation that bankrupts a country.

    • marcos@lemmy.world
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      2 days ago

      Bankruptcy is a legal term, whatever the law says that can be bankrupt can in practice be bankrupt.

    • trxxruraxvr@lemmy.world
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      2 days ago

      It doesn’t need to be a business to be able to go bankrupt. Governments have incomes, expenses and debtors. They only can’t file for bankruptcy to get out of their debts, which makes it worse for the country.

      • marcos@lemmy.world
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        2 days ago

        They only can’t file for bankruptcy to get out of their debts

        Countries do that all the time… well, not really all the time, but most decades at least one does it.

        • trxxruraxvr@lemmy.world
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          2 days ago

          What countries do is not the same though. At least in the Netherlands when a company files for bankruptcy the judge will appoint someone to sell all the companies assets and try to pay back the debtors.