【硬核】一口气了解国债，这么一直借下去真的可以么？

Summary

The video discusses government debt - the trend of rising debt levels globally and reasons governments borrow money. It covers debt ceilings, fiscal deficits, economic theories supporting government spending, internal vs external debt, factors limiting debt issuance like interest rates and inflation, and options when debt gets too high like austerity, default or 'dragging it'.

Takeaways

• 😀Governments borrow money to fund deficits caused by higher spending than tax revenue
• 😮Government debt levels relative to GDP have been rising steadily in major economies
• 🤔There are debates on whether governments should borrow more based on modern monetary theory
• 😲High government debt can raise interest rates and hurt the economy if uncontrolled
• 📉Quantitative easing helps lower interest rates so debt costs stay manageable
• 😠High inflation is the biggest threat that can force spending cuts to control debt
• 👍🏻Low interest rates and inflation allow more borrowing without economic pain
• 😥Austerity, default or money printing are ways to address high debt issues
• 🤨Countries often just delay the pain by borrowing more to pay off old debt
• 😫Voters make long-term austerity hard so governments keep borrowing

Q & A

What was the main factor that caused the Great Depression and led economists to rethink the role of government in the economy?

The inaction of the US government and its refusal to intervene during the economic downturn was seen as a key factor in the Great Depression lasting over a decade. This led economists like John Maynard Keynes to argue that governments should take an active role, especially during economic crises.

How does increasing government debt raise interest rates across the economy?

Issuing more government bonds increases the supply, lowering bond prices and causing interest rates to rise. Since government bond rates determine the risk-free rate, interest rates across the wider economy also increase.

What is the difference between internal and external debt for a government?

Internal debt is borrowed domestically using bonds denominated in local currency. This gives more flexibility as debt can be monetized. External debt is borrowed from foreign creditors in foreign currencies, increasing vulnerability to default.

How does quantitative easing help governments take on more debt?

Central banks use QE to buy bonds and lower long-term rates. This reduces the interest cost of new debt, allowing governments to borrow more without rate spikes.

Why is inflation the limiting factor for government borrowing and spending?

When inflation gets out of control due to excessive spending, central banks lose their ability to lower rates artificially. The only solution left is austerity measures to suppress inflation and growth.

What are the three main options governments have when they issue too much debt?

When debt gets too high, governments can (1) implement austerity by cutting spending (2) default on the debt or (3) 'drag it' by borrowing more to pay off old debt.

How does the US debt ceiling provide political leverage rather than restrict spending?

The debt limit has been constantly raised, showing it doesn't really restrict government borrowing. However it does give parties political leverage during negotiations.

Why do most governments choose to 'drag' high debt rather than impose austerity or default?

Dragging debt by borrowing more is politically easier as it avoids painful short-term consequences of austerity or default. But it fails to address the underlying debt problem.

How did quantitative easing allow Japan to increase its debt level substantially?

Japan used QE to artificially suppress bond yields, reducing the interest cost of debt. This allowed the government to take on more and more debt without rate spikes.

What parallels can be drawn between the US debt situation today compared to Japan's in recent years?

Like Japan, US debt is high but interest rates were low pre-pandemic due to QE policies. However, with inflation and rates now rising, US debt capacity may face issues like Japan did before Abenomics.

Outlines

00:00

🌍 政府の借金とその論理

このセクションでは、世界各国が急速に増加させている政府の借金に焦点を当てています。アメリカ、イギリス、ユーロゾーン、中国、そして世界で最も多くの借金を抱える日本など、多くの国々がGDP比で高い借金を有しており、その意味と影響について掘り下げています。政府が大量の借金をする背後にある論理、特に借金が経済に与える影響や、デフォルト（債務不履行）のリスク、政府の支出と収入の構造、そして財政赤字の常態化について説明しています。また、デットシーリング（借金上限）の概念と、それが象徴的な制約である理由、そして調整の頻度についても触れられています。

05:00

📈 政府支出の理論的根拠と現代貨幣理論

このセクションでは、政府がなぜ大量の借金をし、経済に投資するのかの理論的基盤について深掘りしています。経済危機や不況時に政府が積極的に支出を行う理由、そしてその支出が経済に与える刺激効果について説明しています。また、近年注目を集める現代貨幣理論（MMT）についても触れ、政府の借金と支出が経済にとってどのように機能するか、そしてその限界について考察しています。さらに、政府と中央銀行の関係、内部債務と外部債務の違い、および経済活動における債務の役割についても説明しています。

10:01

💰 政府借金の制約とインフレの問題

このセクションでは、政府の借金が直面する主要な制約、特に利子率とインフレーションの影響に焦点を当てています。政府の借金が経済に与える潜在的な影響、借金のコスト上昇、およびインフレーションへの対応不足が経済に与える影響について分析しています。また、量的緩和（QE）とその政府の借金に対する影響、特に長期金利に対する中央銀行の介入とその結果についても詳しく説明しています。

15:02

🔍 債務問題への対処法

このセクションでは、政府が過剰な借金をどのように管理し、経済を安定させるかについての様々な戦略について説明しています。具体的には、緊縮財政、デフォルトや債務再編、そして問題の先延ばしという三つの主要な方法について詳細に分析しています。これらの戦略が経済に及ぼす影響、特に短期的および長期的な結果について考察しています。また、政府が直面する政治的および経済的制約、およびこれらの戦略の実施が選挙民や政治システムに与える影響についても触れています。

20:03

🌐 政府借金のマクロ経済学

最終セクションでは、政府借金とマクロ経済政策の全体像についての包括的な解説を提供しています。政府がなぜ借金をするのか、借金の限界とその経済への影響、および借金管理のための様々なアプローチについての深い洞察を提供しています。また、このエピソードが視聴者にマクロ経済学と各国の財政政策についての理解を深めることを目的としていることを強調し、視聴者に対する感謝の意を表明しています。

Keywords

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Highlights

US government debt has risen over 120% of GDP in the past 25 years

Japan has the highest government debt in the world at 260% of GDP

Constant budget deficits lead governments to borrow money by issuing bonds

Governments spend borrowed money to provide public services and stimulate the economy

The debt ceiling is mainly symbolic and used by US political parties to argue

Keynesian economics says governments should borrow and spend money to increase demand during recessions

Modern Monetary Theory claims governments can freely borrow as long as there is no inflation

Internal government debt is more controllable than external debt denominated in foreign currencies

Higher interest rates restrict governments by making borrowing more expensive

Central bank quantitative easing aims to lower interest rates so governments can borrow more

Inflation is the key restriction on government borrowing that cannot be avoided

Facing excessive debt, governments can pursue austerity, default, or drag out the problem

Austerity brings economic pain in the short term but can solve debt issues

Defaults seriously damage a country's creditworthiness and access to financing

Dragging out debt issues with more borrowing is politically expedient but risky

Transcripts

Our video today is very hardcore

Let's talk about a topic

that is arguably the centre of the financial universe

Very interesting

and intricate

Very suitable for me to talk about it

That is

Government Debt

This is the trend of the U.S.

debt to GDP over the past 25 years

Now it's over 120%

Britain, the Eurozone and China

at what seems like an incredible speed

increase their own country's government debt

And the most outrageous

the world's most prolific borrower

is Japan

The government debt is the highest in the world at 260% of GDP

What does this number means?

It takes every person in Japan 2.6 years to make

enough money to pay off their national debt

If you look at the revenue of the

Japanese government in 2022

If they don’t eat or drink or spend any money

not even a cent

then it’ll take them 18 years to clear the debt

Have the government of these countries gone crazy

borrowing so much money

What’s the logic behind it?

Will US default on its debt

Why do some economists say

its better for government to borrow more and more money

how much money is considered a lot?

To be honest

when I was crafting the script for this episode

I believe the contents are valuable

I try to

make it easy to understand

If you think this video is useful

You can save it as favourite

This will make your

collection more valuable

Every government makes money

and spends money

This is US government’s income for the past 30 years

95% of them comes from tax

This is their spending

They spend their money on public utilities like

National defence, military, infrastructure, etc

You will find that

most of the time they spend more than they earn

In technical terms, it's called constant budget deficits

Where did the extra money come from?

Government would issue bonds to borrow money from the market

to make up for this part of the funding gap.

You can see the fiscal balance of

China, Japan, UK and Eurozone

they are all in constant deficit

If you just look at this financial situation

if it’s your next door neighbour

then he is probably a prodigal

But that doesn't seem to hold true for a country

Let’s first take a look at

debt ceiling, a topic

heavily debated for past few days

In order to control themselves

so that the government spending won’t go too high

there exist a symbolistic system

called

Debt Ceiling

The congress would vote on deciding the line

The treasury cannot borrow money

beyond this line

This sounds like a reasonable restriction

and self-restrain

But why did I say it’s symbolistic?

Once the debt nears the ceiling

the Congress would immediately held a vote

When it’s getting close, there’ll be a vote

When it’s getting close, there’ll be a vote

So from 1981 till now

In 42 years

the debt ceiling has been adjusted 42 times

On average, it is raised once a year

Actually everyone knows that

if there’s a problem with US debt

like a default

then the blow to the entire U.S. economy would be devastating

White House predicted that

if the default lasts for a few weeks

it would lead to a 45% drop in the U.S. stock market

More than 8 million people would lose their jobs

In short, the consequences are very severe

So this debt ceiling

mainly gives the two parties an opportunity to quarrel

Now Biden’s Democrats is in power

but in Congress

majority is Republicans

So the Speaker of the House, McCarthy

wanted to take this opportunity

to force Biden to reduce financial expenditure

So both sides are negotiating

this financial mechanism

Two years ago when Biden

threw in $5 trillion to stimulate the economy, they didn’t do anything

Now they want to start negotiation when the debt ceiling is close

Actually there aren’t many countries

in the world that has debt ceiling

Other than US, there is Denmark

But Denmark debt ceiling is very high

Three times their current debt

so the debt ceiling is basically just a farce

There is really no country in the world

that restricts its own country's debt issuance

because of debt ceiling

For the past 50 years

Global government debt continues to rise

Why do you think they are borrowing so much?

What are they thinking?

Are they not happy?

Lin is going to

give you a

Economic 101

First we have to understand

what is the problem we are trying to solve

Government borrows money to spend

the problem is why are these governments

spending so much money?

The father of modern economics

the one who introduced

The Invisible Hand, Adam Smith

he actually was very against government spending

He believes that market competition is the most efficient

So the less the government manages, the better.

the smaller the better

If you borrow so much money and spend so much money

it is very irresponsible

US followed his theory

from 18th to 19th centuries.

encouraged competitions

The government would not regulate anything

But slowly the problem arises

he realised that

If the market is completely free to compete

the economy will collapse every once in a while

the economy will collapse every once in a while

The worst was

the Great Depression in 1929

In the face of such a great depression

US government was firmed on their practice

I don't want to intervene too much in the economic cycle

Unexpectedly, this depression lasted for more than a decade

Afterwards, many economists believe that

the reason why this depression can last for so long

is due to government’s inaction.

Under the background of this era

another great economist appeared

John Maynard Keynes

He put forward a set of new theories

adopted by the governments over the world

The most succinct summary is that the market will also fail

so the government cannot ignore completely

especially during economy downturn

People are not willing to spend money

demand is sluggish

So government should borrow money and spend it

to increase aggregate demand

and prevent economic crisis

Of course

Keynes's theory was later disputed

However

Its core has been gradually accepted by governments across the globe

When the economy faces a crisis or recession

The government has to borrow and spend money vigorously

Stimulate the economy

Only in this way the economy can get out of crisis

Did you notice that

whenever there is a crisis

the government will start spending money

US 2008 subprime mortgage crisis

2020 pandemic

1998 Japan financial crisis

2008 subprime mortgage crisis

2011 earthquake

Euro debt crisis

Not sure if it is a coincidence

but lately there are quite a lot of crises

so governments accumulated large amount of debt

But it doesn't mean that

the money spent is useful

For the past 30 years

Japan has been borrowing money

but their GDP

is motionless

What we said just now

is the theoretical basis for government spending

Let’s expand it a little

Recently, this theoretical basis has been upgraded

An economic theory that subverts

previous theory became popular

Modern Monetary Theory (MMT)

The theory believes that

Governments should be able to borrow freely

Because the more the government spends,

the more money the non-government side of the market makes

The government's credit is essentially money

As long as there is no inflation

Then borrow and spend as much as you can

This is the best for the economy

Of course this theory

is not yet accepted by mainstream economics

but it really is very popular these days

that’s why I mention it

Alright, even if

the government can borrow and spend money

they can promote employment, stimulate economy

Could they be borrowing and spending

money endlessly

This definitely doesn’t sound reasonable

There must be a limit

However the limit

is definitely different for people like us

Because government possess capability

that we do not have

and that is printing money

Some might disagree

Lin you’re wrong

How could government print money

Only central bank can print money, government can only borrow

That’s right, theoretically that’s how it should be

Most of the well-established systems

also separates the government from the central bank.

The government can't simply print money

from the central bank and spend it

But actually, there are ways

the government can work around it

The simplest one would be

the central bank cannot print money and give it to government

but it can buy government bond right

Isn't this what Quantitative Easing does?

Essentially it is government borrowing money from central bank

This is actually the difference between domestic debt and foreign debt

The one we mentioned

A country's using bond issued locally

is internal debt

Maybe back in the days of using gold standard

it is restrictive for government

they wouldn’t dare to print money without limit

But now

it is easier for government to evade

default by printing money

Money borrowed overseas

are usually debt denominated in USD

and this is external debt

No one can print money other than US

If you really have a cash flow problem

you can only borrow from others

This is the time

when it's very vulnerable to default

If we say that

internal debt is a buffer period for economic activities

Then external debt

is amplifier of economic activity

It’s easy to understand

because debt itself is leverage

When the economy is good

the capitals would all come to you

then you can magnify your advantages

then you can magnify your advantages

but once there’s a problem

and the capitals withdraw

it’ll exacerbate the crash

Actually throughout history

many national level economic crash

debt crises

are mainly due to default on external debt

In the 1970s and 1980s

Latin America was growing fast

and attracted a lot of external investment

Two oil crises in the 1980s

USD raised interest rates

Latin America had to follow suit

causing their debt grew further

External debt was increasing

In the end, Argentina, Brazil, Mexico

all defaulted on their debt

The American investors lost their money, too

Euro debt crisis

lasted for so long

is because Eurozone

in my opinion is a bit troublesome

Before this, I’ve mentioned in

Greece and Euro debt crises videos

In the beginning these European countries

all huddled together and

created a central bank to print money

but their fiscal policy is a separate business

This is turning internal debt

into external debt

But Greece, Italy and Spain

were facing a problem

Their national debt is at risk of default

European Central Bank

can’t break the rule

can’t break the rule

right

So they can only borrow money from others

EU and IMF lent money to them

but they are also forcing them to tighten up expenditure

This caused further problems for these countries

Their economy was already weak

and now they had to tighten up

This fiscal policy was supposed to be

an economic regulator, but instead it

increased economic fluctuations

This is the problem with external debt

1997 Asia Financial Crisis

1998 Russia and Ukraine default

2001 Argentina Financial Crisis

including last year’s Sri Lanka

The direct reason for their crash

is because default on external debt

This is why some people said internal debt isn’t debt

Although this theory is a bit extreme

internal debt is certainly a debt

but it's much more controllable

Governments can borrow more comfortably

in an emergency without worrying

about short-term defaults

So looking from this point

US has their particularity

They don’t have to worry about internal or external debt

for them it is all internal debt

The dollar, of course, is another topic

Alright just now we talked about

the government borrows money differently than we do

It's not money or the debt ceiling

that restricts government borrowing

So what exactly is restricting it?

Lin dive deep and found that

The biggest debt crises in history

can be summed up in two ways

First is interest rate

Interest rates are at the heart of financial markets

and national debt is the core of the interest rate

because its price determines the risk-free rate

You will find that bond issued by companies

for example Microsoft, Amazon, Petrochina

their interest rate is highly related

to government bond rate

because its pricing is determined by the interest rate of government bond

If more government bonds are issued

the supply will increase, the price will drop

and the corresponding risk-free interest rate will rise

Interest rates across the economy will rise accordingly

The effect is almost the same as raising interest rates.

What’s the effect of raising interest rates?

I believe everyone would have some understanding on this

and that is suppress consumption, suppress investment

suppress economy, suppress everything

Maybe it confuses you a bit

Isn't the rate hike controlled by the central bank?

how is it related to national debt again?

We have talked about this in previous episode

To put it simply

Central banks control short-term interest rates

National debt control long-term interest rates

In addition to suppressing the economy

the rise in interest rates has a more direct consequence for the government

The cost of issuing debt

simply goes up

If they want to take new debt

they’ll have to pay higher interest

It’s like if you get into more car accidents

then the insurance become more expensive

Too much government debt raises interest rates

If the rate is too high to a point

that the tax received is insufficient to pay for interest

how can they stimulates economy

don’t bother think about it

The government will become

a fund that provides

fixed income to global creditors

They’ll get into a spiral of debt

uncontrollable, borrow more and more

This idea is

not extreme at all

For example, Japan's debt

If the average government interest rates

is as high as 5%

Then all the government revenue

is not enough to pay the interest.

Of course, this is not the case in Japan.

Although their debt is the highest in the world

but their current fiscal revenue is only 11%

they spent it mostly on interest rate

For the past few years

although they are borrowing more

but the interest paid is less

This is because government has a way

to counter the rise of interest rate

All the things we’ve talked about is slowly connecting

This method is Quantitative Easing

Since 2013, Japan has been

following Abenomics

and borrowing a lot to stimulate economy

But he was worried about borrowing too much

causing a rise in interest rates

The central bank is responsible for printing money to buy government bonds

Once demand increase

price increase, then the interest rate can be lowered

It's better to get it down to almost zero

After that, the government

can borrow money comfortably

without worrying interest rate hike

Until 2020

Japan government couldn’t be bothered to pretend

They laid it all out

They just want to do unlimited QE

Their goal is in the open

and that is to push down 10 years yield

to below 0.25%

After battling with capitals in the market

it has been increased to 0.5%

still there’s a limit

After 2013

Japan's central bank holdings of government bonds risen

because the central bank continues to buy government bonds

to push down interest rate

This allow Japanese government

to pay lesser interest

despite borrowing more money

Don't think that central banks are printing money

purely to put a little more money in the economy

It has a

very important target

and that is to lower long-term interest rate

Not only in Japan, QE in US, Europe

produced the same results

Every time someone questions whether

the U.S. Treasury is borrowing too much

Treasury Secretary Janet Yellen

will come out and say

although we borrowed a lot

but the interest rate is very low

The interest rate we pay now

is not as high as it was in the 90s

The implication is that

Borrowing is cheap and it helps stimulate the economy

then why wouldn’t I borrow?

So you see

the first restriction on borrowing, interest rate

can be lowered through

cooperation between

government and central bank

But there’s no free meal in the world

There is one restriction

which the government cannot get around

The one topic that concerns

governments, central banks and economists

and that is inflation

We have published videos

for these two topics respectively

Inflation

is the one matter that troubles many governments

They can use money to pull demand

They can use money to stimulate employment

But when it comes to inflation, there’s not much they can do

Other economic problems now seem trivial

Central bank can no longer suppress interest rate artificially

nor use smart-ass policy to curb

Countless historical experiences have shown that

the only solution is taking austerity measures

This is akin to chemotherapy

Kill all the cells

both good and bad

Cooling prices by suppressing the overall economy

There are some governments who

couldn’t go through with it

so they continue to borrow and stimulate economy

This risk them falling into hyperinflation

Venezuela was in that position few years ago

You must be wondering

now that US inflation is so high

why are they still increasing debt ceiling?

This is because

they have spent all the money, there’s no other way

If the US government knew that

the stimulation in 2021

would bring such high inflation,

The Fed raising interest rates frantically, and the global economy in recession

they wouldn’t dare spending so much money

Now that you have an understanding on the two restrictions

now let’s take a look at how much bond issued

is good for some countries

or is considered normal

As long as they don’t touch on these two restrictions

Issuing bonds is about

trade-off between

growth and stability

They can have different strategy

or different style

Some countries which are relatively stable

like Denmark

even though they have debt ceiling, but it’s not useful

Debt to GDP ratio

has been below 50%

Countries like Sweden, Netherland, Switzerland

are similar

They don’t pursue high economic growth

they do it step by step

US and Japan are both pursuing rapid growth

China has different system

the central is quite stable

but for local bond or municipal bond

then there are more problems to that

Anyway, no matter how much debt a country chooses to issue

these two are the bottom lines

If they issued too much causing a hike in interest rate

or suppress economy or unable to repay

or they issued too much until there’s a rise in inflation

then there’s a risk of losing control

At this time the government debt is definitely too high

So the red line for debt

is not an absolute number

nor is it an absolute ratio to GDP

It is based on

the economic environment of the country

If interest rate and inflation is low

and people have confidence towards government

Even if you keep borrowing

and the number may seems too big

but it could be nothing for the economy

Before pandemic, that’s how it is for

US, Japan and Europe

Even if Japan’s debt is so high

only the media would make some noise

The financial market is still relatively stable

but the environment is different now

Let’s look at the interest rate on ten-year US Treasury bonds

3 years ago was 0.6, now is 3.7

Inflation is even higher

3 years ago inflation was 0

now is 4.9

Not only US

it’s similar in Japan and Europe

So you see

Japan's 260% debt ratio

Two years ago it didn’t look so high

but now it poses a problem

If one day UK government realised that

they issued too much government bond, inflation is rising

the road is getting narrow

What can they do?

Then the choice will definitely not be so easy.

There are three roads ahead

First

the more direct way

austerity

You borrow too much

so spend less and borrow less

Simple as that

For example US government

Often because the budget is not approved

they had to shut down for few days or few weeks

In 2009

they shut down for the longest time in history

35 days

Across US, more than 800,000 civil servants

had not been paid for more than a month

This kind of small scale austerity

can't solve the problem at all

Large scale intense austerity will

definitely bring an immediate hit to the economy.

So governments need a lot of courage

to implement this kind of policy

They will also face strong resistance

when implementing the policy

800,000 people didn’t receive wages

They wouldn’t take such drastic measure

if they had not been forced to a certain degree

Like Europe debt crisis

Italy, Greece, Spain

always these countries

In 1997

Asia Financial Crisis, Korea

they all implemented very strict austerity policy

to solve debt issue

Do you think they have self-conscious?

Of course not

This is because they have external debt

They had to borrow from IMF

The creditors must have forced them to retrench

In the face of debt problem

there’s a second road

This is more radical

and that is by defaulting or debt restructuring

Many of you may not be clear on

what would happen when a country default

Country default

is not the same as how a company default

not as disastrous

selling off all your assets

and dissolve immediately

When government goes bankrupt

investors can’t do much about it

Over a century ago

it was indeed solved by force

When Venezuela went bankrupt in 1902

the creditors, Germany, UK, Italy

dispatched army and blew up the ports

to force Venezuela to pay

But now such thing will not happen

Now when a government default

the biggest consequences is decline in credit

Then the cost of financing will be high

and it will be hard to borrow money

This is a serious case

because now an economic body

is based on credit

The more advanced the economy, the more it depends on credit

Once government default

entire country’s credit market will crash

Everyone would avoid it

Then the currency market will plummet

They would take a really long time

at least 8 to 10 years

to slowly recover

This shows how serious the blow is

The US government predicted that

defaulting on few interest rate terms

would cause 8 million people lose their jobs

However

this doesn’t mean there won’t be a default on internal debt

Lin counted that

from 1980 to 2022

In these 42 years

There are a total of

84 internal defaults around the world

I counted it one by one

What I found

interesting is that

Internal default for larger country is

at the same time with external debt default

For example, Russia in 1998

Argentina in 2001

Greece in 2012

Their main problem

is on external debt

When the government see that

they are defaulting on external debt

their credit will definitely face a huge blow

then might as well default on internal debt

and won’t even have to pay back debt

or print less money

For the past 20 years, Argentina had

bankrupted 3 times

The two roads we mentioned, austerity and default

are not common options

Most government would take this route

I think you know what it is

that is drag it

How do they drag it?

Either by borrowing money to pay back old loan

or simply print money

or both at the same time

Generally when government facing debt problem

it’s when economy is sluggish

accompanied by high inflation

At this time if they

spend money to stimulate

for example stimulate EV industry

and suddenly there’s a technology outburst

that brings about improvement in productivity

Then the economy will be expanded

inflation will be digested by growth

Government finances will stop going downhill

The economic problem is thus easily traversed

But of course

the possibility of this is too low

If they continue to borrow and print money

the most probable outcome is it becoming worse

If they keep dragging

that is certainly irrational

and unreasonable

But this is what most countries

choose to do when facing

debt problem

This doesn’t mean

the government is procrastinating

This is actually due to political system

They are often elected by terms

Even if economists and government official

do not want to drag

but the citizens don’t want to face austerity

and they can’t stand government defaulting

In these 3 solutions

Only dragging is expansive

It’s the least painful in short-term

This kind of policy

is definitely popular amongst the voters

If you watched the episode on Greece

you’d now how undependable voters are

Did you realise

a lot of the topics

are now connected

Today, on the topic of government debt

we talked about US debt ceiling

Why governments borrow money

The difference between internal and external debt

What are the factors limiting debt issuance

What to do when issuing too much debt

Quite hardcore right

For this episode

I spent a lot of time scripting

not a lot of stories told

with the hope of laying

the framework down in one go

and help all of you to understand

more macro economics

and fiscal policies of various countries

To those of you who watched till now

Let me give you a Like and hope you can give me one too!