5 ms·

government does both, but you cannot specify what your loan pays for

• jjk166 6y ago
  If someone loans you money to start a business and you blow it gambling, you're going to have a hard time getting them to give you another loan. The government can say it's taking on debt responsibly, but if there are no subsequent economic improvements eventually their credit rating will fall.
  • toomuchtodo 6y ago
    You don’t have to be faster than the bear, just faster than your slowest friend. The entire first world is headed towards Japanification.
    • jjk166 6y ago
      That analogy only works if lenders can only stop giving loans to one nation at a time. In reality, rates can be raised for any combination of nations simultaneously. It's not like the DRC looks like a good investment just because its not as bad as Venezuela.