Zimbabwe votes today to elect its president. The nation generated headlines when it's economy collapsed when its inflation went over a million percentage points. The nation now uses dollars and South African currency.
Are debts different for nations from for individuals?
It would only be different when the nation can print money. In that way, inflation cancels out all the debts accumulated. If without, the currency will become unreliably weak. The cost of borrowing will go up.
In President Obama's past speech, he outlined how he can achieve the goal of cutting the deficits.
- Faster approvals for generic drugs cuts medical costs.
- Cut subsidies to large farms for crops that they do not grow.
- Stop sending tax dollars to Freddie Mac and Fannie Mae.
- We save a whole lot of money by ending wars in Iraq and Afghanistan.
- We save by making they systems efficient and by adjustment to Federal pension plans.
- Ask financial institutions to refund the tax money.