Question:

Theoretically, can the U.S. lower its debt by taking over a country that it's indebted to?

by  |  earlier

0 LIKES UnLike

Government bonds that other countries buy from the U.S. count towards the debt, correct? Then if the U.S. made war with those countries, won, and seized the government bonds back, would that lower the debt?

 Tags:

   Report

5 ANSWERS


  1. In theory i guess yeah.

    If the cost of the war does not exceed the debts outstanding.

    BRILLIANT IDEA.


  2. If we did, a big, terrible IF, our remaining bonds would be  worthless. No one would lend money to us again unless at higher interest rates. The seized bonds would be written off but new debt would be require higher interest payment. If it did, it would make things worse.

  3. I don't think a war with China is the best way to lower debt.  That may just be me, but I think that might be a little bit over the edge.  War itself is very expensive, and we would go into more debt trying to pay for it.

  4. First of all going to war with China would not be a smart thing because we may lose.

  5. Well, a war with China would be very costly. So in a war to get rid of that debt, we would need to borrow from someone else. Then we'd have even more debt. If we were to go to war with a nation we are at peace with like China, just think of the repercussions from the international community (cause we know how much the rest of the world just loves us). Then we'd be at war with other countries for attacking a peaceful nation for monetary reasons. No matter how great one nation is, they cannot fight against the entire world combined, and that's what we'd be doing. The costs would FAR outweigh the gains.

Question Stats

Latest activity: earlier.
This question has 5 answers.

BECOME A GUIDE

Share your knowledge and help people by answering questions.