Wednesday, April 17, 2013

Should not lending to a sovereign be the exclusive prerogative of its citizens, of its taxpayers?

Financial conference after financial conference, the closer I am to believing that the financing of a sovereign, should be the exclusive prerogative of its citizens, those to whom a government should be fully and exclusively accountable to. 

Now if some foreigner or wants to finance a citizen or a corporation of a sovereign that is just great but if it goes behind the back of a sovereign’s citizens and gives credit to its government in easier terms than what the citizen thing it merits, that is probably going to end up very bad. 

For instance, what business had Cypriot banks lending to Greece and what business had the Greek government borrowing from Cyprus? Now both Greeks and Cypriots are suffering big time.

In other words, foreign creditors dilute the representation of citizens and taxpayers.