SamuelRSmith on 16 June 2009
| NJ5 said: When it comes to debt, it's not the people with the debt that are taking any risks, it's the people lending the money out. This is true to a certain extent, but if you default on your debt good luck finding new suckers to prop you up.
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Yeah, of course. But we're talking about the entire economy here, people defaulting on their debts has a smaller impact when we're talking about the entire economy.
And if we're talking about Government debt, then it won't default on its debts (well, it hasn't since the start of time, who knows what the future will bring), and due to the way that Governmental debt works, through securities and such, it doesn't have to pay back in large chunks, anyway, it mainly just has to pay the interest for very long periods of time.
