Not all Debt is Equal
01/05/2012 | | creit card debt, debt relief, family debt, government debt, household debt, Japan debt, Sovereign debt, too much debt, Us Debt
While being in debt is not so great for a household–because interest payments leave the household and go to a bank, or credit card company, debt can be tolerable for a country. If the debt is largely internally held (Japan), interest payments go from the government to domestic creditor households. The problem is that to pay the interest, governments must either raise taxes or print money; both of which have drawbacks.