| Topic: | Re:Re:Re:Re:The False Economy...brought to you by all Governments... | |
| Posted by: | Will Watson | |
| Date/Time: | 09/12/10 17:08:00 |
| And is that a bad thing? You deposit your money in a bank they have to lend it to someone (who will pay interest) so the bank will be able to pay you interest. One potential borrower is a country like the UK. Like any borrower you have to weigh up how likely they are to default and set the interest rate accordingly. If the country is spending like shopaholic with his first credit card then the bank is not going to be too optimistic its loan will be repaid and charge higher interest. If the country is Seem logical enough. Countries are just treated like individuals. |