When your credit card is maxed out...?

...and you are in the red zone, in debt up to your eyeballs, what do you do?

Do you verbs to go on a spending frenzy like John Keynes?
Answers:
Presumably, you are making a comparison between individuals surrounded by deep debt and governments which verbs to borrow to spend but it is not very helpful contained by most cases.

In the UK and US for example, the governments do not have a problem borrowing; nearby are still many people prepared to lend them money. If my credit cards were all "maxed out" I would not know how to continue to spend excessively as no-one would lend me any money.

In the case of Greece, they are within exactly the position of being refused credit and are have to cut back on spending. In the UK, the government have chosen to reduce spending, partly because it fears a Greek style credit crunch and moderately because politically it believe that governments should play a smaller role in society. As I work out the US is not overly concerned about its debt which, though high, is not unsustainable.

If you are asking, should government continue to spend when they have high-ranking debts, that's a better question and a harder one to answer. In fact, no-one really know. In essence, are the risks of a high debt greater than those of a possible recession if the government reduce spending? It depends on the conditions, I would say that the UK Government is right to reduce spending but it's touch and move about, if they cause a big increase in job loss then they will have made a big mistake.
Yes you do, when you enjoy to pay to stop your credit disintegrating into dust in your hand.


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