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The various governments largely don't act as lenders. When they say "Portugal owes Spain $86 Billion", they actually mean "The government of Portugal owes vario
by Tuna-Fish 15y ago
The various governments largely don't act as lenders. When they say "Portugal owes Spain $86 Billion", they actually mean "The government of Portugal owes various Spanish institutions and individuals, mainly banks and retirement funds, a total of $86 Billion".
None of it cancels out.
- DevX101 15y agoThat's a very important point. I wish it had been noted on the graph. That being said, do governments buy bonds of other countries? Or is it just financial institutions and individuals buying them?
- justincormack 15y agoNot much in Europe, as they are on the same currency. Indirectly through the European Central Bank and EFSF but almost all is banks and individuals.