Join the Unexplained Mysteries community today! It's free and setting up an account only takes a moment.
- Sign In or Create Account -
Sign in to follow this  
Followers 2
likwidlite

War and government Debt

14 posts in this topic

Just a thought, but what happens to government debt when a country goes to war with another it owes money too?

For example; The Syria crisis deepens and the US bombs the Assad regime sparking outrage in China/Russia.

The Chinese government then declares war on the US. What happens to the huge US debt to China?

3 people like this

Share this post


Link to post
Share on other sites

Just a thought, but what happens to government debt when a country goes to war with another it owes money too?

For example; The Syria crisis deepens and the US bombs the Assad regime sparking outrage in China/Russia.

The Chinese government then declares war on the US. What happens to the huge US debt to China?

Oh, I've been wondering the same thing.

In short: We'd be royally ******!

Share this post


Link to post
Share on other sites

"In short: We'd be royally ******!"

That depends on how you look at it. Ignoring a potential nuclear war (nothing much would matter then) and without going into a huge debate about who would win etc, you have to weigh up whether the cost of war would out weigh the cost of the debt. At some time there must be a point when the costs of war is cheaper than just paying the debt. And if you've got a big ol' military and the resources to feed, clothe and supply it then gamble is a potential win, win, no debt and your bloated military is cut down.

Share this post


Link to post
Share on other sites

Posted (edited)

"In short: We'd be royally ******!"

That depends on how you look at it. Ignoring a potential nuclear war (nothing much would matter then) and without going into a huge debate about who would win etc, you have to weigh up whether the cost of war would out weigh the cost of the debt. At some time there must be a point when the costs of war is cheaper than just paying the debt. And if you've got a big ol' military and the resources to feed, clothe and supply it then gamble is a potential win, win, no debt and your bloated military is cut down.

I think our debt to China is somewhere around, oh, $1.16 Trillion dollars....

The Treasury Department estimates that our debt to China is approximately $1.16 trillion. That is nearly $15,000 in debt for the average American family.[Prove it…]

According to the US Census Bureau, there are approximately 78 million families in the US as of 2010. Since the US owes $1.16 trillion to China, that means [$1.16 trillion / 78 million families] that each family’s share is $14,871.79.

Link: http://www.defeatthe...much-do-we-owe/

And the War on Afghanistan:

To date, $459.8 billion dollars has been allocated for the war in Afghanistan since 2001 in current, or "then year" dollars

Link: http://nationalprior...ar-afghanistan/

Now, if, we get involved in Syria and China/Russia get mad, and declare hostilities, and China calls in it's debt, our paper money will be useless over night. Another huge expensive war, is also bad, as it puts us much more in debt. Not sure how a war would be considered cheaper? I believe we also owe Russia something around, $79.9 billion dollars also. We really shouldn't want to make them angry....

Edited by Kowalski

Share this post


Link to post
Share on other sites

I understand the amount of debt the US is in. My point is if China declared war wouldn't the US just say "Up yours, we're not paying ****" and wipe out the debt. The US already has a huge military to use and could quite easily use the huge amount of resources to keep it going, and lets not kid ourselves one bit that the government gives a **** about the human cost. A move like this would be a long term, a country like the US and its resources could be up and running again in 30 years (Look at Europe after the war) and thats assuming it took the brunt of a war which it wouldn't (ignoring the big bombs). After the war the US elite would still be the US elite minus a huge debt. Wiping the slate clean so to speak.

1 person likes this

Share this post


Link to post
Share on other sites

I understand the amount of debt the US is in. My point is if China declared war wouldn't the US just say "Up yours, we're not paying ****" and wipe out the debt. The US already has a huge military to use and could quite easily use the huge amount of resources to keep it going, and lets not kid ourselves one bit that the government gives a **** about the human cost. A move like this would be a long term, a country like the US and its resources could be up and running again in 30 years (Look at Europe after the war) and thats assuming it took the brunt of a war which it wouldn't (ignoring the big bombs). After the war the US elite would still be the US elite minus a huge debt. Wiping the slate clean so to speak.

Okay, I get what your saying now. Hmmmm....I'm not sure how that would work to be honest. When it comes to economics I'm no Peter Schiff.... :)

Share this post


Link to post
Share on other sites

If China does go to war with us why would we pay them back. Their economy would crash because we wouldn't be buying anymore of their junk and they would have a hard time shipping it anywhere else.

1 person likes this

Share this post


Link to post
Share on other sites

It would be like what Gappened with Germany they owed money in war reparations, it kept them poor and not a threat. Then they stopped paying and became rich and well...

China won't declare war on the US becaus ether need the US to bolster their economy and the US needs CHina for cheep labour and money. So it would be a lose lose situation.

1 person likes this

Share this post


Link to post
Share on other sites

It is a very good question.

Is it even possible that we pay them back, considering the house of cards our economy is? We will just continue to pay the interest, but the principal will never be paid.

1 person likes this

Share this post


Link to post
Share on other sites

http://www.ritholtz.com/blog/2012/01/how-much-of-us-consumables-are-made-in-china/

I don't think the debt or other economic factors will play as big of role if we go to war with China as people think. Certain industries will suffer, such as walmart, on the short term. But it might actually incentivize us to manufacture more in the United States. As for the debt and other financial compensation- whoever wins can dictate that. The effect of a third world war probably would do worse for everyone financially, than the worry over money owed.

1 person likes this

Share this post


Link to post
Share on other sites

Just a thought, but what happens to government debt when a country goes to war with another it owes money too?

For example; The Syria crisis deepens and the US bombs the Assad regime sparking outrage in China/Russia.

The Chinese government then declares war on the US. What happens to the huge US debt to China?

War or no war, global economies are so over-leveraged today, there is no way that even the most rosy 'growth' forecast could possibly begin to fund the debt service. And the fact is there's nothing 'rosy' about the prospect for real economic growth in the developed world right now. We are in the midst of a shifting economic paradigm and war would not delay it by more than a couple of months at best.

Think global reset.

2 people like this

Share this post


Link to post
Share on other sites

Most of America's debt is domestic. Only 15-20% of it is held in China if I remember right.

1 person likes this

Share this post


Link to post
Share on other sites

Most of America's debt is domestic. Only 15-20% of it is held in China if I remember right.

still enough to cripple the economy.

1 person likes this

Share this post


Link to post
Share on other sites

Just a thought, but what happens to government debt when a country goes to war with another it owes money too?

For example; The Syria crisis deepens and the US bombs the Assad regime sparking outrage in China/Russia.

The Chinese government then declares war on the US. What happens to the huge US debt to China?

Anyone who conveniently calls their banker, their enemy, because of something like this Snowden affair, and then has the supposed Free Press buy into that argument Is nearly as good as Adolf Hitler's propaganda machine.

Add to this, that poor men make up the bulk of our military, and the wealthy don't want to pay the price of their sons or their wallet, and you have a recipe for why we didn't want colonial rule.

It's also why Pres. Obama thinks that he can go to war without a declaration by Congress.

That earthquake which cracked the Washington Monument was Caused by the signers of our Constitution, as they rolled over in their graves.

Ask the pensioners in Detroit what they would rather do, Borrow from our enemies, or our grandchildren.

1 person likes this

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!


Register a new account

Sign in

Already have an account? Sign in here.


Sign In Now
Sign in to follow this  
Followers 2

  • Recently Browsing   0 members

    No registered users viewing this page.