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If anything this makes Federal Debt more useful and attractive than private debt. The problem isn't that households can't "print currency" (in a sense they can
by podperson 14y ago
If anything this makes Federal Debt more useful and attractive than private debt.
The problem isn't that households can't "print currency" (in a sense they can) but that their debts aren't denominated in the currency they can print. Thus, the US government is in a relatively unique position that, for example, Cyprus and Greece do not enjoy.
- dragonwriter 14y ago> If anything this makes Federal Debt more useful and attractive than private debt. A theoretical observation borne out quite well by the observed market characteristics of federal debt (e.g., the federal governments cost of borrowing.)