It’s possible that other countries might start calling us on the debt, if we borrow faster than we lend, or faster than inflation.
Countries don’t have credit ratings in the same way Americans do, but they still have ratings on their bonds. If those ratings get downgraded, people stop lending us money, and then everything crashes and burns.
It’s possible that other countries might start calling us on the debt, if we borrow faster than we lend, or faster than inflation.
Countries don’t have credit ratings in the same way Americans do, but they still have ratings on their bonds. If those ratings get downgraded, people stop lending us money, and then everything crashes and burns.
Most of our debt is domestically owned, though.
The same process still applies, though. Domestic lenders can also drive the rates up by refusing to lend.
Our ratings HAVE been downgraded, and it’s only going to get worse