05-15-2017, 01:12 AM
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Too old to care
Industry Role:
Join Date: Jun 2001
Location: On the sofa, watching TV or doing my jigsaws.
Posts: 52,943
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Quote:
Originally Posted by thommy
maybe it was wrong to study that suff.
as i see it is enough to hold a camera on a chech pussy to understand the world economy
and resolve the problems of the planet.
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You never studied squat. Read this and see how wrong you are.
https://www.google.cz/webhp?hl=en&gw...s+borrow+money
https://money.stackexchange.com/ques...row-money-from
Quote:
Sovereign states borrow money explicitly in a two primary ways:
General Obligations: These are bonds (long term) or notes (short term), usually sold on the open market, which pay interest over a period of time. They are backed by the faith and credit of the sovereign, and are not backed by a security such as property.
Revenue Obligations: These are bonds or other securities which are backed by specific sources of government revenue. For example, a city may issue revenue bonds to build a bridge -- those bonds are secured by the toll revenue from the bridge. Revenue bonds are usually found in municipal governments.
A sovereign cannot be compelled to repay debt, and there isn't a judicial process like bankruptcy to erase debt. When sovereigns default, they negotiate new terms with creditors and pay back some fraction of the actual debt owed.
They can also print money to repay debt, which has other nasty consequences.
But, while a state cannot be compelled to repay a debt, creditors cannot be compelled to loan money to the state either! Any enterprise of sufficient size needs access to capital via loans to meet daily obligations in anticipation of revenue -- even when times are good. Defaulting makes borrowing impossible or expensive, and is avoided.
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You don't have a clue. |
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