▲ 71 ▼ Where does the revenue gathered from taxes go and what is national debt? (lemmy.world) submitted 7 months ago by AfterNova@lemmy.world to c/nostupidquestions@lemmy.world 41 comments fedilink hide all child comments
[–] AfterNova@lemmy.world [S] 4 points 7 months ago (2 children) How high can the debt to gdp get before the economic system collapses? permalink fedilink source parent hideshow 4 child comments replies: [–] TubularTittyFrog@lemmy.world 7 points 7 months ago* (1 child) infinity. the issue isn't the number of the debt. it's creditors faith that you will pay them back. things collapse when your lenders lose faith and stop lending. you could have a low debt to gdp ratio and that still could happen. permalink fedilink source parent hideshow 2 child comments replies: [–] AA5B@lemmy.world 1 point 7 months ago For example an event like chaotic policy means countries no longer use your currency as a global reserve currency - would mean a sudden drop in investor faith that could trigger this. Or even deliberate disrupting the economy to devalue your currency, depending on whether we believe they’re smart enough to have a strategy or just take their chaos at face value permalink fedilink source parent [–] HobbitFoot@thelemmy.club 1 point 7 months ago Until the government can't pay it back. permalink fedilink source parent
[–] TubularTittyFrog@lemmy.world 7 points 7 months ago* (1 child) infinity. the issue isn't the number of the debt. it's creditors faith that you will pay them back. things collapse when your lenders lose faith and stop lending. you could have a low debt to gdp ratio and that still could happen. permalink fedilink source parent hideshow 2 child comments replies: [–] AA5B@lemmy.world 1 point 7 months ago For example an event like chaotic policy means countries no longer use your currency as a global reserve currency - would mean a sudden drop in investor faith that could trigger this. Or even deliberate disrupting the economy to devalue your currency, depending on whether we believe they’re smart enough to have a strategy or just take their chaos at face value permalink fedilink source parent
[–] AA5B@lemmy.world 1 point 7 months ago For example an event like chaotic policy means countries no longer use your currency as a global reserve currency - would mean a sudden drop in investor faith that could trigger this. Or even deliberate disrupting the economy to devalue your currency, depending on whether we believe they’re smart enough to have a strategy or just take their chaos at face value permalink fedilink source parent
[–] HobbitFoot@thelemmy.club 1 point 7 months ago Until the government can't pay it back. permalink fedilink source parent