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S&P downgrades U.S. credit rating from AAA (pg. 13)
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| enydo |
| We totally are. I thrust my trust upon the bust of THE17SSSSSSSSSSSSSSSSSSSSSSSSSSSSSS. |
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| Joss Weatherby |
| quote: | Originally posted by pkcRAISTLIN
borrowing power has nothing to do with the military (directly). Borrowing power is determined purely on the belief that a country is good for the debt. |
Exactly. You don't borrow with military power. You take. |
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| pkcRAISTLIN |
| quote: | Originally posted by Joss Weatherby
You don't borrow with military power. You take. |
:stongue: |
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| Quazar |
| quote: | Originally posted by pkcRAISTLIN
borrowing power has nothing to do with the military (directly). Borrowing power is determined purely on the belief that a country is good for the debt. |
And one of the reasons we're believed to be good for the debt is that our military ensures our existence long-term. That's all I'm saying. I didn't say they were directly related, but they are related. |
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| pkcRAISTLIN |
| You could say that about every single nation that isn’t a cesspool of instability. The size or strength of one’s military is unrelated. Japan has a monster debt and have no real military to speak of. |
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| Quazar |
| quote: | Originally posted by pkcRAISTLIN
You could say that about every single nation that isn’t a cesspool of instability. The size or strength of one’s military is unrelated. Japan has a monster debt and have no real military to speak of. |
True, but they're backed by our's. (though they can't use our's to go take another nation's wealth, so my point becomes a little moot here)
If our military isn't what ensures our "credit", then what would you say does most-of-all? GDP? Control of the World Bank/IMF? |
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| pkcRAISTLIN |
| The economy; the belief that bonds are a good, low-risk investment when compared to investors’ other options. |
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| Joss Weatherby |
| quote: | Originally posted by pkcRAISTLIN
You could say that about every single nation that isn’t a cesspool of instability. The size or strength of one’s military is unrelated. Japan has a monster debt and have no real military to speak of. |
Actually they have a very formidable fighting force. They are ranked 24th and the JSDF is larger than Canada, Australia and the United Kingdom. |
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| pkcRAISTLIN |
| quote: | Originally posted by Joss Weatherby
Actually they have a very formidable fighting force. They are ranked 24th and the JSDF is larger than Canada, Australia and the United Kingdom. |
I should hope they had more men than ours! But I thought it was a largely ceremonial force? Or has that changed in recent years? |
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| Joss Weatherby |
| quote: | Originally posted by pkcRAISTLIN
I should hope they had more men than ours! But I thought it was a largely ceremonial force? Or has that changed in recent years? |
No they maintain a very active, trained, and well equipped military. They only spend 1% of their GDP on it, but that comes out to be something like almost 60 billion USD a year on it.
They are forbidden to deploy a fighting force anywhere beyond their islands, but they keep a very large one at home and a very active maritime force to cover their large number of far-flung island territories. Their navy is particularly modern, including a number of AEGIS class guided missile cruisers with anti-ballistic missile technology. |
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| pkcRAISTLIN |
| Well, thanks for the correction. |
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| Lira |
| All right, I come from a country ranked B by S&P and I don't understand what's this commotion all about. Isn't AA+ still good? I'm completely ignorant when it comes to economics, finance, and Aussie rules football. |
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