So Answer This.

[dastardlybard]

http://news.bbc.co.uk/2/hi/business/4780844.stm

So how is it possible for the US government to default on their debt and ruin their credit?
And from whom does the US government borrow?

Comments

[cheramie]

How very . . . American of us. *Sigh* I hate Bush.

US debt

[horselibrary]

It's actually very easy for the govt. to default on their debt. Most of that debt in internal--the govt. is borrowing from its own private citizens, in the form of things like bonds. As long as the individuals buying bonds and the businesses loaning money to the US believe the government is solvent, it is. It can't ruin its credit in any kind of legal sense--the only way it can do so is for people to stop trusting it enough to loan it money.
Hope this helps!
--N.