It seems both backwards and perfectly sensible that the country with the biggest debts is also the country with the biggest stick. It’s backwards because it seems counterintuitive to any mafia-style arrangement where the guy with the big stick is collecting the money. But it’s sensible because the safest debtor is one that won’t default, and why would the country with the biggest stick ever want to default?
It’s almost like some twisted version of Mutually Assured Destruction mixed with economics and realpolitik. As long as you don’t try to collect your money, it’s safe and profitable to lend me more of it. Because of the implication…
It’s almost like some twisted version of Mutually Assured Destruction mixed with economics and realpolitik. As long as you don’t try to collect your money, it’s safe and profitable to lend me more of it. Because of the implication…