4 ms·
as debtor, you have to pay a higher price when the creditor's risk for non-payment increases. power of the market.
by andsoitis 6mo ago
as debtor, you have to pay a higher price when the creditor's risk for non-payment increases. power of the market.
- dlcarrier 6mo agoThe US can always print money; it's the expected inflation dictates the value of bonds.
- nsvd2 6mo agoWell, yes, but that's another way of saying the same thing. If the US can't pay and is forced to devalue their currency, thus tanking the value of your investment, you lose money. Therefore, the likelihood of this drives interest rates up.