is there a under limit to the worlds debt ?

[Torplexed]

Originally Posted by Moonlight

What would happen if the countries in that link refused to pay any more of it back. Would there be any wars because of it, or would it lead to another financial meltdown to make any other look like a monkeys tea party.

The trouble with a small nation not paying back it's debts is that, quickly, they will run out of institutions willing to lend to them in the future.( The same happens with individuals BTW). Fine, if you just want to get away with it once, not so good if your economy relies on constant borrowing to fund basic services.

Of course, the bigger the defaulter, the bigger the shockwaves.