Commodity Trade Mantra

Posts Tagged ‘Government Borrowing’

Government Borrowing Is Not Like Private Debt

Neither borrowing nor saving is inherently good or bad. At least in the private sector. Whether one chooses to save or borrow to finance a project depends upon a subjective assessment of the relative trade-offs. It’s another matter entirely, though, when we’re talking about the government sector, as the two are not comparable.

What Options Are Left for Central Banks?

What happened over the past six years is that central banks have moved from providing short-term buffers to being the saviors of the government, economy and asset markets. This extraordinary transformation from the role as short-term buffers during crisis, is the core reason why central bank policies are now failing to move the needle.

U.S. Government Is Borrowing About 8 Trillion Dollars A Year

A lot of money on interest payments is saved by borrowing over shorter time frames. This strategy has indeed saved the US federal government hundreds of billions of dollars in interest payments, but it has also created a situation where the federal government must borrow about 8 trillion dollars a year – JUST to keep up with the game.

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