National Debt

Andrew33

I'm tired of hearing about deficits and national debts every time I switch on tv/radio, every single country in the developed world seems to have a national debt! even the successful prosperous ones! Question is, if every country owes money, who do they owe it to?? I don't buy the usual stock answers like "the world bank" or "the arabs" or "China". I suspect there is a lot more to this national debt thing than just one country owing money to another.

The_Honeybadger

Andrew33 wrote: »

I'm tired of hearing about deficits and national debts every time I switch on tv/radio, every single country in the developed world seems to have a national debt! even the successful prosperous ones! Question is, if every country owes money, who do they owe it to?? I don't buy the usual stock answers like "the world bank" or "the arabs" or "China". I suspect there is a lot more to this national debt thing than just one country owing money to another.

Foreign banks rather than countries, eg we in Ireland owe billions to German banks but not Germany the country itself, who actually have a national debt of their own. Also pension funds and other investors. That is my understanding anyhow.

woodseb

mickeyk wrote: »

Foreign banks rather than countries, eg we in Ireland owe billions to German banks but not Germany the country itself, who actually have a national debt of their own. Also pension funds and other investors. That is my understanding anyhow.

this is pretty much the answer, some of the middle-east states and cash-rich countries in Asia such as China are also in the business of sovereign lending but it is primarily big global banks, insurers and pension funds that we are in the hock to

ei.sdraob

i looked thru NTMA site, i somehow dont think they would have a breakdown of who buys these (80 billion at present in debt), especially considering there are intermediaries involved

seems any organization that has few billion to invest might be interested in our bonds and is capable of buying these, i presume mostly hedge funds and pension funds?

InReality

A govt can get a loan from the same places as a big company , the places mentioned already have a lot of money to invest.

Its not often explained well in the press though ..
One huge difference between national debt and my debts are that Nations live "forever".
For example I think the UK is still paying a few £ a year) napolean wars debts.

When you think of it on that timescale , its much less clear , what a high ND debt level is.