Debt

there’s a lot

Ali v. Tyson comparison

Loans → interest

rome

  • debt slaves

  • forced debt bc of loans and high interest rates

The US Government always payed its debt (in the beginning)

  • Paid back france for the help

    • but had a big debt

  • 3billion → 30 somth eurpos per roman

Congress has the power to tax/spend (prez can influence but not directly control)

The amount of money to invest is limited

Realistically we cannot pay off the debt as a nation

  • It’s so high and the fact our GDP is used to serve the citizens (day-to-day expenses)

  • Discount rate - how much banks have to pay

Basics on Debt and Currencies of Nations

  • National Debt: The total amount of money that a government owes to creditors. It can arise from borrowing to finance public spending that exceeds tax revenues.

  • Currency: The system of money in general use in a particular country. It serves as a medium of exchange, a unit of account, and a store of value.

  • Impact of National Debt: High levels of national debt can lead to concerns about a country’s ability to repay, potentially affecting its credit rating. This can influence interest rates and economic growth.

  • Currency Devaluation: When a country's currency loses value compared to other currencies, often resulting from excessive national debt or inflation. This impacts trade balances and the cost of imports and exports.

  • Monetary Policy: Government policies that manage the supply of money and interest rates to control inflation and stabilize the currency.

  • Bond Issuance: Governments often issue bonds to finance debt, with the promise to pay back the principal along with interest over time.