International debt crisis

Sir, – Indebted states and the public generally fail to understand why borrowing costs are rising

Sir, – Indebted states and the public generally fail to understand why borrowing costs are rising. It is not the case that “markets” are attacking countries. There is simply not enough credit on supply to meet the voracious demand of governments.

As government entities refuse to repay their debts, or do so by creating additional legal tender, they ensure the market for their debt vanishes.

Also, when a debtor fails to meet his obligations, the lender makes losses, which means his supply of loanable funds must fall, and he is no longer in a position to lend additional funds, even if it were his wish.

It is also particularly galling that the betrayed lender, who cannot sue for compensation, is attacked in the media by the dishonourable debtor when he refuses, or is unable to lend, additional resources to the dishonourable beggar.

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It is important, for the sake of our children and grandchildren, that our Government discontinues deficit spending, so we do not consume all of the capital our descendants need to survive. It is interesting to note also that not a single elected representative in the Dáil or Seanad advocates a budget surplus. – Yours, etc,

GEOFF WALES,

Glenabo Heights,

Fermoy, Co Cork.

Sir, – As enormous financial crises afflict both Ireland and the US, the contrast between the responses of the two parliaments is striking. In the US Congress, representatives are actually working in the first weeks of August! In contrast, our TDs have just embarked on scandalously long holidays.

Another point of notice is that the US representatives appear to be immaculately dressed. Would voters, who pay their salaries, be impressed if they turned up for work in casual gear? – Yours, etc,

BRENDAN CHAPMAN,

Trimleston Drive,

Booterstown, Co Dublin.