Quote Originally Posted by mazdamazda
This is an oversimplification of things.

The USA has an unemployment rate of 5.5% (ours is around 10%).

The USA has a national debt of 8 trillion dollars (note to m54, the Philippine's debt is only around $60 billion).
The U.S. has something the Phils. doesnt have: a huge economy and stability. So it is easy for the U.S. to borrow money from the rest of the world. Central banks all over the world buy U.S.T-bills. No one doubts the stability of the U.S.

Here, foreign creditors are so scared we would default on payments that they had to pressure our govt to collect more taxes before they lend us more money.

If i was a creditor, i would rather lend money to the US. its like lending money to Bill Gates (eventho he doesnt have to borrow money, just an example)..

Lending the Phils money is like lending to a minimum wage earner. Kakabahan ka talaga baka di kaya magbayad. Sana di mawalan ng trabaho....

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Yes maybe i did oversimplify things. But no one can deny the fact we need money to get out of this rut... a whole lot of money.

Tho money cannot solve all of our problems, it can solve a very big chunk of it... leaving the smaller chunk of problems easier to manage.