When the U.S. government sells a Treasury security, it is making a promise to pay back the money, with interest, according to a set schedule.
What Kind of Country Reneges on Its Contracts?
When the U.S. government sells a Treasury security, it is making a promise to pay back the money, with interest, according to a set schedule. Businesses and individuals make promises like this all the time. They’re effectively (and often explicitly) contracts. When you renege on one, you’d better have good reason. Simply choosing not to […]
July 19, 2011