Country Debt Enablers and the Greek Conundrum

For a country with little penchant to tax and a greater penchant to spend, financing its fiscal deficit is an ongoing chore. When it comes to financing its deficits, governments have tricks up their collective sleeves – not available to the private sector. What makes it easy to finance a deeply indebted country is that its debt is placed -- not sold and doesn’t meet a market test. Hence yields are not a deterrent to further indebtedness. Continue reading →