Peter blogging about financial crisis|how is the financial crisis affecting all of us.
May
11
Samian’s 10th -Giuliani 2012 asked:
I know that back in the 1970s the Latin American countries borrowed billions of dollars from the US and Western Europe for infrastructure projects. But when the recession hit in the 1980s, the interest rates shot up, so the developed countries weren’t able to keep doling out credit to the Latin American countries. So the Latin American countries eventually couldn’t pay off their debts because they were too high.
I know that back in the 1970s the Latin American countries borrowed billions of dollars from the US and Western Europe for infrastructure projects. But when the recession hit in the 1980s, the interest rates shot up, so the developed countries weren’t able to keep doling out credit to the Latin American countries. So the Latin American countries eventually couldn’t pay off their debts because they were too high.
Is that a possibility of what could happen with the US to China?
And what exactly would happen if China stopped lending credit to the US?
Megan
