Following piece published in HT, perfectly summarizes the crisis -
The US debt crisis is like a rich man who owns homes, yachts and gold but is suddenly finding it diffcult to pay off the installment on a plane he bought. Politics, however, keeps him from using his other assets to handle these payments.
Even for repayment printing money is not a good option. It will only create new problem (read inflation/hyperinflation) Also, if by just printing money u could repay ur loans, u would not hv credit rating agencies hving diff ratings for diff countries.
6 comments:
US has not reached that stage yet. Obama has said they have ability to borrow more. and they have.
let senate approve it.
do u read HT? :P
What stage? I hvnt said they hv defaulted!
the difference between rich man and USA is that USA can print money. rich man cant
Printing money isnt exactly a "solution". Otherwise why would US have debt in the first place?
i was talking abt repayment.
Even for repayment printing money is not a good option. It will only create new problem (read inflation/hyperinflation)
Also, if by just printing money u could repay ur loans, u would not hv credit rating agencies hving diff ratings for diff countries.
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