Because many countries are operating in debt, such as the United States, where the government issues bonds and ordinary people borrow money, they are all empty.
The country will not go bankrupt, and the government will go bankrupt.
Most people in China can't tell the difference between the state and the government.
One of the main signs of government bankruptcy is that no one buys the national debt it issues, even if the premium is high. The credibility of the government has been completely destroyed, and the symbol of the government's credibility-money is like waste paper.
-Iceland, with a population of only 320,000, has experienced extraordinary financial development for more than 10 years, and the proportion of the financial industry in the national economy far exceeds that of other industries.
-As of June 30, 2008, the total assets of Kaupthing Bank hf, Landsbanki Islands hf and Glitnir Bank hf in Iceland were 14.4 trillion kronor, or about 128 billion US dollars. In contrast, Iceland's gross domestic product (GDP) in 2007 was only 1.3 trillion kroner.
When bank assets accumulated in large quantities, Icelanders tasted the sweetness. The per capita GDP of this small country ranks fourth in the world, and its beautiful and clean environment and generous welfare policies make it an ideal city that the world yearns for.
-Iceland is considered to be one of the developed countries that suffered the most in this crisis, mainly because its economy relies too much on banking and has too much debt. The financial crisis gripped Iceland, and the government announced that it would take over Iceland's largest bank. Many people lost their life savings because they exchanged most of their money for bank stocks. The whole Icelandic society is full of fear, and quite a few people have nothing. Icelanders who get mortgages face a double threat. Real estate prices have been falling, and analysts predict that they will fall even more. But many mortgages are obtained in foreign currencies-in the past year, Iceland's exchange rate has risen to double digits, which means it is profitable. Now, with the sharp depreciation of the Icelandic krona, homeowners have to repay their loans in euros or dollars, and these loans have become extremely expensive in a short time. This will make the current crisis more urgent.
-Iceland's foreign debt now exceeds $654.38+0383 billion, but its GDP is only $654.38+0937 billion.
-20081October 6-8,65438, the Icelandic government took over the top three banks in the country: Kaupthing (first), Landsbanki (second) and Glitnir (third).
-2008107,65438 The Icelandic government announced that it had obtained an emergency loan of 4 billion euros (US$ 5.46 billion) from Russia. Although the financial circles of this NATO member country repeatedly claimed that this was a helpless move taken by Iceland to avoid "national bankruptcy" after its request for help from its neighbors was rejected, it still shocked NATO and the West to see its allies reaching out for money from the "enemy".
-2008107,65438 The Icelandic government announced that the exchange rate system would be linked to a basket of currencies, but only one day later, the government announced that it would abandon this decision. Due to the lack of sufficient market support, the Bank of Iceland decided on the 8th to abandon the fixed exchange rate of 1, 3 1 Icelandic krona and change it to 1 Euro to let the Icelandic krona float freely. However, after the floating exchange rate was implemented, the Icelandic krona fell by 23% in one day. Most banks have now stopped trading in Icelandic krona because liquidity has dried up.
-200810.9 65438 In order to prevent capital outflow, the Icelandic government took over the country's second largest bank and temporarily stopped its savings business to cope with the increasingly severe economic situation. As a result, nearly 300 thousand British depositors were unable to withdraw their deposits, and Britain claimed that it would sue the Icelandic government to safeguard the interests of its depositors.
In view of the crisis in Iceland, we can only conclude that it is unwise for a small country like Iceland with a population of only 320,000 to get ahead in the international financial field.
The west is deeply worried about whether the Icelandic crisis will spread to the surrounding areas. Iceland is not the only country vulnerable to the financial crisis. Small rich countries in Europe will be the biggest victims of this financial crisis, and countries such as Switzerland, the Netherlands and Belgium may all go bankrupt. In addition, Ukraine, Greece, Slovakia and other countries are also very fragile.
It seems that in the era of globalization, national bankruptcy is not impossible. Like Iceland, Pakistan is also facing a national bankruptcy crisis. Standard & Poor's downgraded its credit rating to CCC+ only higher than bankruptcy, indicating that Pakistan is on the verge of national bankruptcy. The Pakistani government's foreign exchange reserves are only $865,438 +0.4 billion. The market value of Pakistan's stock market has evaporated by over 1/3 this year. Due to high oil prices and inflation, Pakistan's foreign exchange reserves have shrunk by 67% in nine months, and it rained all night. The Pakistani rupee has been devalued frequently, so far it has depreciated by 2 1%, and the inflation in Pakistan is as high as 25%. Recently, Standard & Poor's downgraded Pakistan's credit rating to the lowest level. In addition, Pakistan's foreign debt of $3 billion is about to expire. Pakistan seems to be on the verge of bankruptcy, and it may collapse faster than Iceland.
Respondent: Sun _ 126248- Magician Level 4 10-27 08:39.
Iceland has a population of only 300,000. Several banks occupy 70% of the stock market. So these banks went bankrupt, which is equivalent to the bankruptcy of the country.
Interviewee: Nanxun Buyi-Director Grade 8 10-27 08:40
National bankruptcy introduces the concept of bankruptcy in the economic field to the country. It means that the country's debt is greater than the gross national product and the economy is insolvent. For example, Iceland's gross national product is only over $654.38+000 billion, but its foreign debt has reached 654.38+000 billion, which is enough to earn! Of course, national bankruptcy can't be disintegrated like enterprise bankruptcy, or even acquired by other countries, hehe! This country still exists.