30th birthday blog

                                               My 30th birthday blog
               
                     By Justin Winn

    The time when my 30th birthday will come the economy will have changed a lot. Like what I mean by that is that the federal debt that we owe to the government. will soon go bankrupt and the trillion dollars that we owe not might be paid for and the government will probable be shut down and that is not a good thing at all. By the on time I'm 30 and I have a wife and a few kids and by the time I have grand kids they won't be able to have there college education to be paid for because they might not able to afford it. The government will always take strange paths to stay in business and to keep our government working and to prevent it from shutting down. But if the trillion we owe to the government is not paid for trouble might come our way. Every child that is born each year and grows to be a high school-er then later has to have there education paid for when they end up going to college, like I said it might not happen because of the costs of financial aide and the money transferred to the college student, is government money that is paid for the college students education. Time will go by and things will change for everyone money, gas, food, taxes, will change problem in about 30 years the same age I will be at in the 30 years that will be coming for me.

But some people will know When a country fails to pay its creditors on time, it is said to go into “default”, the national equivalent of going bankrupt. But sovereign defaults are quite different from business bankruptcies as it is far harder for creditors to repossess the assets of a sovereign entity than to repossess the assets of a company (an unarmed Argentinian naval vessel detained in Ghana for ten weeks in 2012 was an exception). In the first instance, to curry favor in international markets, defaulting countries tend to restructure their debt rather than simply refusing to pay anything at all. But these so-called “haircuts”, where the original value of a bond is reduced, can be much more painful for the holders of government bonds than a simple clip of the scissors. After its $81 billion default in 2001, Argentina offered to pay its creditors a third of what it owed—93% of the debt was eventually swapped for performing securities in 2005 and 2010. But the remainder, which is held by vulture funds and other investors, is still in dispute. These “holdouts” are waiting for $1.3 billion plus interest. And when Greece defaulted in 2012, bondholders were forced to take hits as high as 50%.


 In less severe cases, countries may choose to restructure their debt by requesting more time to pay. This has the effect of reducing the present value of the bond—so it isn't entirely pain-free for investors. Some suggest that this is the right course of action for Ukraine as it struggles to balance its immediate domestic priorities against its obligations to bondholders. Defaults can also be very painful for the offending country, particularly if they are unexpected and disorderly. Domestic savers and investors, anticipating a fall in the value of the local currency, will scramble to withdraw their money from bank accounts and move it out of the country. Critically, there is no international law or court for settling sovereign defaults, which helps explain why they are so varied in length and severity. More international regulation has been proposed—including powers to prevent minority holders from hijacking the process—but such conditions ultimately remain up to the issuing country. The first bond issuance's since the new proposals (by Kazakhstan and Vietnam) include these clauses. Other countries might follow suit, but this doesn't resolve the $900 billion of bonds outstanding that were issued under the old rules.

Thank you for reading this blog I hope you have enjoyed reading this I hope it was worth reading. because I put work into making this blog so thank you.