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Governments Don't Repay Their Debt They Roll It Over


YouKnowWhatIMeanLike

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Over last couple of weeks we had to endure several politicians, advisers and economists tell us that governments don't repay their debt, but they roll it over. so we don't have to worry about the total size of debt. One example is Seamus Coffey. Is it true? If so how much can the country roll over every so often? If not what's the downside of rolling over debt? What happens if you can't roll over debt?
 


He3

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To infinity, and beyond, if some deluded ones are to be believed.
 

ShoutingIsLeadership

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They do repay debt; however, they generally do so by borrowing money. Debt replaced with different debt.
 

gerhard dengler

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Over last couple of weeks we had to endure several politicians, advisers and economists tell us that governments don't repay their debt, but they roll it over. so we don't have to worry about the total size of debt. One example is Seamus Coffey. Is it true? If so how much can the country roll over every so often? If not what's the downside of rolling over debt? What happens if you can't roll over debt?
Fiscal Cliff?
 

Hewson

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Over last couple of weeks we had to endure several politicians, advisers and economists tell us that governments don't repay their debt, but they roll it over. so we don't have to worry about the total size of debt. One example is Seamus Coffey. Is it true? If so how much can the country roll over every so often? If not what's the downside of rolling over debt? What happens if you can't roll over debt?
We only roll over when the ECB tell us to.
 

ManUnited

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Over last couple of weeks we had to endure several politicians, advisers and economists tell us that governments don't repay their debt, but they roll it over. so we don't have to worry about the total size of debt. One example is Seamus Coffey. Is it true? If so how much can the country roll over every so often? If not what's the downside of rolling over debt? What happens if you can't roll over debt?
If you can't roll over the debt you have to pay or default. A lot of countries have been paying down debt, suppose it depends on the individual circumstances and parties in power at the time.
You should have a look into the role government debt plays in a (normal) economy. It's important. Private sector needs safe debt, pensions and insurance companies for example. It is impossible for the private sector to create risk free debt. Only governments can do that. That's the theory anyway.
 

Fractional Reserve

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They roll the debts over and hope that inflation knocks the billix out of it .But as we are seeing now its exploding out of control worldwide .The banksters own the game and the corrupt politician vote buyers went completely nuts .Interest is killing countries and its people it about 30-40% of gdp i believe .Wouldnt that be nice if the people could have the interest for societies good , but we couldn't have that now because that would be a daft idea looking after the people, they have to be controlled and taxed like good little serfs for the benefit of banksters and corrupt f88king politicians
Over last couple of weeks we had to endure several politicians, advisers and economists tell us that governments don't repay their debt, but they roll it over. so we don't have to worry about the total size of debt. One example is Seamus Coffey. Is it true? If so how much can the country roll over every so often? If not what's the downside of rolling over debt? What happens if you can't roll over debt?
 

Hewson

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I don't know if there's a country anywhere (Norway might be an exception) that doesn't borrow to pay off debt. It isn't a problem when your economy is functioing properly and growing, the markets are happy to bankroll you for a profit.

Ireland's problem is a mix of personal debt (as opposed to the national debt) and an imploded banking system. Throw in weak or zero growth, high unemployment, overly expensive public services and an inability to print money and you have the Devil's Cocktail.

Our government would love to be in a position to roll over its debt. We may get there in a couple of years if Merkel and the Bank of Dysfunction can be persuaded to remove their boots from our necks.
 

Radix

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Over last couple of weeks we had to endure several politicians, advisers and economists tell us that governments don't repay their debt, but they roll it over. so we don't have to worry about the total size of debt. One example is Seamus Coffey. Is it true? If so how much can the country roll over every so often? If not what's the downside of rolling over debt? What happens if you can't roll over debt?

Ah now, are you only just realising this truth about the great money tree in the garden of modern political life?
 

Ribeye

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There more knowledge of economics and more backbone in a real cup of coffee,

Seamus is a shill, and a low rent shill at that,

The idea the govts don't repay debt is braindead,
 

YouKnowWhatIMeanLike

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I don't know if there's a country anywhere (Norway might be an exception) that doesn't borrow to pay off debt. It isn't a problem when your economy is functioing properly and growing, the markets are happy to bankroll you for a profit.

Ireland's problem is a mix of personal debt (as opposed to the national debt) and an imploded banking system. Throw in weak or zero growth, high unemployment, overly expensive public services and an inability to print money and you have the Devil's Cocktail.

Our government would love to be in a position to roll over its debt. We may get there in a couple of years if Merkel and the Bank of Dysfunction can be persuaded to remove their boots from our necks.
how do you determine the total size of potential borrowing? defined by excessive deficit procedure as 60% of GDP? or 95bn?
 

Dublin 4

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Of course you can roll debt over - you roll it over into Austerity


I wonder if Seamus Rocks up to Tallaght tonite & tells them all to roll over - will he get rolled over? :evil:
 

Moneygod

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Over last couple of weeks we had to endure several politicians, advisers and economists tell us that governments don't repay their debt, but they roll it over. so we don't have to worry about the total size of debt. [One example is Seamus Coffey Is it true? If so how much can the country roll over every so often? If not what's the downside of rolling over debt? What happens if you can't roll over debt?
I wonder are you taking the mick asking that question or maybe you really want to believe it......it must be that you want to believe it.petunia
 

YouKnowWhatIMeanLike

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There more knowledge of economics and more backbone in a real cup of coffee,

Seamus is a shill, and a low rent shill at that,

The idea the govts don't repay debt is braindead,
don't know Seamus has done some nice work around bondholder distribution of Irish banks in the past. I'm just surprised to hear the gospel of rolling over eternal debt in the last couple of weeks so frequently. it was fun during the boom to hear bankers tell you you never have to pay back that loan but just swap property or equity or the like. but the party is now over and I don't think it's wise to tell people in Ireland that we never have to pay back that debt will just have to pat a "tiny" interest on it.
 

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