multilaterals

Updated: May 24, 2025

The government doesn't borrow from savers through the marketplace but internationally, often from multilaterals. Outlandish default rates result in vertiginously high real interest rates. Inter-corporate lending, barter, and cash transactions substitute for bank credit, corporate bonds, or equity flotations. As a result, the private sector's financial leverage is minuscule.

Samuel Vaknin - Capitalistic Musings