What Happens When A Country Declares Bankruptcy?

What happens when a country can’t pay back its debts? A country going bankrupt is more technically known as a country defaulting on its debt. When a country defaults, it can’t pay back the money loaned to it by foreign investors and other countries. When its debt to GDP ratio is high, creditors won’t trust the country as much, and it’ll have a lower credit rating. It can be a major uphill battle that raises the unemployment rate, causes stock markets to crash, and severely lowers peoples’ standard of living.

Countries like Argentina, Greece, Jamaica and Iceland have defaulted on their debt due to major financial crises. But some of these countries have recovered much better than the others. Multi-billion-dollar debt means a country can be stuck paying back huge amounts of money. Without a booming economy and recovery plan, they could be caught in a vicious cycle. Iceland’s 2008 financial crisis was massive-- how do you think they recovered?

Agencies like the International Monetary Fund are good resources for bankrupt countries to get bailouts. But a bailout can come with conditions like a country having to crack down on tax evasion or make their countries more open to international business. How do you think bankruptcy would affect the population of the US? Things like crime and unemployment would rise, as well as many other consequences. From why countries go bankrupt to how they can bounce back, here’s everything you need to know about how a country can become broke.

Written by: Courtney Hayes
Narrated by: Adam Newmark
Edited by: Vitalii V.

CHAPTERS:
00:00 Intro
00:46 Why do countries go bankrupt?
03:14 What happens after bankruptcy?
05:52 What happens to the population?
06:47 What about the global economy?
07:31 Why defaulting is good for some countries

[jam]

Not gonna lie, TheRichest, has taught me so much more then my school did, i mean can you see when your teacher teaching you anything about the videos topic?

[harshdhoka]

American has 22 trillion dollars worth of debt which is never showed and talked about. They are going to increase it more in next 4 years. Pls do a case study on that also.

[marissajohnson]

The more a country prints money, the more you devalue your currency. Currency value is backed by debt, work and scarcity.

[david.walters]

Hey guys, I just wanted to stop by to send some positive energy to all of you! These past years been very tough to me. Ive been challenged mentally, emotionally and certainly spiritually. I feel like i’m finally finding myself and who I was once before when I had peace. I am thankful to come across a channel like this one that shows me that we are really all one in the same. We all have these daily struggles that we deal with that can keep us up late at night but just know that you are not alone. Knowing that I can come here and openly express myself and see others doing the same gives me hope that the world will indeed be a better place but it starts with us. We have to set an example for others and I know we can do it. Peace and Love to ALL OF YOU BEAUTIFUL PEOPLE.

[felixuti]

Warren Buffett once said if you don't find a way to make money while you sleep, you will work until you die

[clairemendoza]

You can't fight poverty by just printing more
fiat into the circulation. If you mean well for the people, embrace a transparent financial system.

[s.b]

Best part after life ends, nobody gonna take those money with them in heaven/hell

[sagnikganguly]

Well, just imagine what would happen if everyone all at once declare bankrupt?

[weeguy]

Buy 2 governments and get the 3rd one half price😂

[jessicalondon]

That's much more to take..

Because of the economic crisis and the rate of unemployment now is the best time to invest and make money 💯

[Wizzybytes]

IF NIGERIA 🇳🇬 IS NOT CAREFUL THIS WILL HAPPEN TO IT 😔😔
THEY ARE ALREADY BORROWING MONEY FROM CHINA 🇨🇳
LOAN THAT IS NOT EVEN USED PROPERLY.. JUST EMBEZZLED AND COLLECT MORE💔

[Waftey]

When a country declares bankruptcy, what happens is that they become bankrupt

[bertiealba]

SUCCESS IS NOT FINAL;FAILURE IS NOT FATAL :IT IS THE COURAGE TO CONTINUE THAT COUNTS. BUSINESS OPPORTUNITIES ARE LIKE BUSES, THERE’S ALWAYS ANOTHER ONE COMING

[rockrock]

China : sooo when do you want to payback?
America : soooo when do you wanna be nuke
China : nvm we wait and you can borrow more money 😅

[dr.finesse]

Good video a lot of people don’t know America is going bankrupt 😬

[dezjamesjr]

One reason those countries are in debt is because of bad spenting an corruption.

[actuallybusiness]

*Don't let insecure thoughts ruin something amazing!*

[gayashinikirubakaran]

me watching this as a Sri Lankan when the country is almost going bankrupt ✨

[jervannynewman]

I'm from Jamaica and it's TRUE prices are going up our currency isnt worth anything tbh

[gorilladisco]

".. one of the countries with an extremely low rating is Argentina with Cs across the board which means the country is valued as a risk .."

Zimbabwe : "At least they bother to grade Argentina."