Is there any negative to having a high national debt?
Is there currently anything stopping you from just dumping all your money without any regard to debt?
Posted Jul 23, 2020, 4:41 PM UTC
39
Ok, there is but it has to be a ridiculously high amount over your gdp (either 20x over or you gdp divided by your interest rate, whichever number is higher i believe) in order to get the bad event surrounding the bankruptcy event.
8
So I can have 20 times my GDP as debt? That's pretty insane.
Thanks for the info.
2
Yeah i believe they made it around modern monetary theory, so it makes sense that that’s when the negative malices come in, although i think they should have more cost cutting measures put in. I only learnt this because my econ machine broke though lol
2
Well you can control construction and military spending is determined by your army.
The rest is determined by social laws, which I guess should be focus only as you can‘t implement healthcare in 70 days.
I also think if you go bankrupt there‘s a way to cut debt was right?
2
Yeah, its super heavy cuts, but it only kicks in when it’s too late according to modern economic theory, so i just thing those insane cost cutting measures should come sooner.
3
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1
"modern monetary theory" shuders
1
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Greece wants to know your location