If Nepal is allowed to issue 1.3 trillion USD in debt every year then they could become more powerful than USA and perhaps the whole world. Now you could order Aircraft Carrier or fire million dollar missiles on donkeys in Afghanistan, one day this fun will all finish. Same is valid for Pakistan
بھیا کہیں آپ سچ کےعاطف میاں تو نہیں ہو ؟If Nepal is allowed to borrow 1.3 Trillion its economy will collapse. They wont be able to pay it back because they have a weak economy and the interest rate the have to pay will be very high. This is how the crisis in Greece started, Germany allowed European countries to use its credit rating to get low interest debt, and they wont on a spending spree borrowing more than they could handle.
There is a reason why some countries like Germany and US have high credit rating. These countries have a good financial track record, they are very developed and highly advanced economies, if you invest in their government your are almost certain that your investment is safe. If you invest in Pakistan there is no guarantee they will pay you back in time.
there whole year Budget is less than the debt they have
they cant pay at all.
Haha fuuny bro. No one defending noora....I hope after this thread we learn something about loans and when they are badتھریڈ کھولنے والا ممکن ہے کوئی حرامخور پٹواری ہو
جو پٹواریوں، اور مجاوروں کے اللّے، تللےّ کے لئے قرضوں کا دفاع کرانا چاہ رہا ہو
لیکن اس بونگے کو اللہ گدھے کی شکل دیکر چائنا بھجوا دے
جاپان، امریکہ جیسے ملکوں نے قرضے اپنی ترقی کے لئے،،،اور قرضوں کی ادائیگی کے لئے مزید قرضے نہیں لیتا
بلکہ اپنی آمدنی میں سے ادائیگیاں کرتے ہیں
I will say if USD could survive for next 5 years it will be great success or paper money.US govt issues treasury bonds some of which have a maturity date of upto 30 years. So they have more than enough time to pay it off. Also people have so much confidence on the bonds, they can trade it with each other in the market like any other currency. That piece of paper (the bond) has value because people perceive they will receive certain interest every year, and the whole amount in 30 years. Even if they cant pay it in 30 years, they will issue more bonds, and there is no shortage of investors who want to buy these.
In the same way, every rupee you have in your pocket is also money that the government owes you as the paper is not worth anything., except for the gold and the confidence that is held behind it. Watch this video to understand the history behind paper money and what it means in principle.
Monetary policy is a delicate balance between your gold reserves, confidence in your economy and the financial strength of your economy among other factors. Nothing is going to happen to US economy for atleast next 100 years. There maybe financial crisis here and there because of mismanagement, but they will learn from it and fix it and move on. Despite the Great Depression, 1970s crisis and dot com crash, 2008 crisis, if you look at S&P 500, its always an upward trend.
I will say if USD could survive for next 5 years it will be great success or paper money.
u are talking about 100 Years.
There is big imbalance of payment and all Govt. under interest based debt trap
whats the point of having that bond when after 30 years the debt will be may be more than triple till today. no value of paper money
the people who are behind this system will let it be drowned in deep sea and bring another system very soon
may be they want big war for that
please stop joking. Paper money is not backed by gold any more. Its backed by nothing they just made them up. u give paper buy real resourcesPaper money is backed by gold reserves and the confidence in countries economy. It does have value. As of yet there is no balance of payment issue or interest rate debt trap.
Even if the debt tripples in 2019, they will still be spending less % of their budget on interest than Pakistan is today. So they can very well afford tripple debt in 2049. Economics and math works. Everytime there is a financial crisis we can pinpoint a cause, some can even predict it before it happens as they can see govt is making a mistake but your 5 year estimate is not backed by any credible source or numbers.
please stop joking. Paper money is not backed by gold any more. Its backed by nothing they just made them up. u give paper buy real resources
looting is going on
I am trying to find out highest gold reserve couldn't get anythingUSA has the largest gold reserve in the world, almost 3 times higher than the no.2 country. Its partially back by gold, partially by confidence in the US economy.
You can go anywhere in the world and exhange the dollars for real gold if you want.
I am trying to find out highest gold reserve couldn't get anything
I think They use to say Petro $$
Now everyone claiming Confidence on Ecomony
i am afraid what would be next step
If Today Japan Russia and China told USA to take your all $$ in our reserve and give us Gold or some other commodities what will happen?Investors are not dumb, if you claim you have a good economy you better have numbers to back it up.
Gold Reserves by country:
1. United States
Just for comparison Pakistan's population is 60% of US Population. But US Gold reserve is 120+ times more than Pakistan.
Number of fortune 500 companies by country:
1. United States133
6. United Kingdom †21
7. South Korea15
8. Netherlands †15
Then again for trade these country need some money either they will use gold to trade with other countries or will buy again dollars.If Today Japan Russia and China told USA to take your all $$ in our reserve and give us Gold or some other commodities what will happen?
If Today Japan Russia and China told USA to take your all $$ in our reserve and give us Gold or some other commodities what will happen?
leave about who is doing whatRussia has already got rid of much of its dollars.
If Japan or China give dollars back... it means they are taking Yen or Yuan in return.
If they take Yen or Yuan in return, it means that the supply of Yuan on the exchange market is decreased.
If supply if Yen/Yuan decreased, their exchange rate will rise. And if the exchange rate rise, their exports will become more expensive to other countries. This could cripple the Chinese and Japanese economy. Japan buys US dollars to keep its Yen exchange rates artificially low so its exports are cheaper and in higher demand in other countries.
It is possible if USA wants to avoid printing money .and any surpluse commodity which is not durable can be used as money for trade but metric(value) will be in dollar again....as for durable asset like gold none of the country want to use as currency .leave about what happened again
will USA agree to offer Gold or other commodities for its Paper $$
so In other words ur using USA wll never take their Paper back for Gold?It is possible if USA wants to avoid printing money .and any surpluse commodity which is not durable can be used as money for trade but metric(value) will be in dollar again....as for durable asset like gold none of the country want to use as currency .