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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: staring who wrote (58610)	12/5/2016 8:23:16 PM
From: Spekulatius	Read Replies (1) \| Respond to of 78745

Seems to simplistic. If there is debt in the economy (which economy does not have debt?) then somebody ought to own this debt too. You can't just look at the debt part, one needs to look at who holds the debt, as I think it matters a great deal, if it is owned within the economy or foreign. But then again, I am not an economist. I also don't think that debt makes the economy respond faster to interest rates. I would look at it the other way round, if a state is indebted, there is no desire to allow high interest rates to begin with. At least not as long as a country controls their own central bank and currency. now if they need to borrow in foreign denominations, that can be a different story, then it is a matter of supply and demand.