International finance question vis a vis corona virus

Almost every country is borrowing money to fund the virus costs. Where is it coming from?

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Fiat money?

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'Fiat money'

pasted from Google if you go in, you will find more! Clearer than I could have explained it :)

"Description

Fiat money is a currency without intrinsic value that has been established as money, often by government regulation. Fiat money does not have use value, and has value only because a government maintains its value, or because parties engaging in exchange agree on its value. Wikipedia"

HTH

If every country is borrowing squillions, why aren't interest rates rising, instead of falling?

If the govt offered a better rate of return I'd have put my money in gilts instead of toilet rolls.

Owain

You just print it.

AIUI two main explanations. It's the central banks by keeping bank rates low and buying the gilts etc. Or it's a global savings glut. It's economics, innit, so buy one answer, get one free, offers are common :(

If they print money, there's inflation and (even more) negative real interest.

Ours is clearly coming from the Nasty Party's Magic Money Tree

Broadback snipped-for-privacy@j-towill.co.uk> wrote

Some are just printing it.

From those who have lots of money and don?t like the risk of the inevitable further big losses in the stock market from the effect of the virus on the economy.

Exactly, Its coming from future production. Thus taxes everywhere have to rise to pay it all back. Its best looked at as an investment. IE the lenders may well have no actual money, but they can make it for as long as they like, knowing that when this is over their coughers will be bursting as our standard of living drops, and the money with interest goes back and the folk who run the capitalist system will be even richer.

Unfortunately, since we stopped having a gold standard, the whole concept of wealth is basically an illusion. Brian

They create it out of thin air!!! Ultimately it comes out of all our pockets. Taxation by stealth.

If you or I did it. it would be called forgery.

There's no doubt, we are headed for a depression.

and leave younger generations to pay it back.

Even more money is going to pile into commodities, land and property.

IS that one that Gordon Brown planted ?.

Germany has cancelled FIT payments to solar panel owners

and leave younger generations to pay it back.

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Yep!

No, it was a figment of Gideon's vivid imagination used to perpetuate his austerity myths.