Sovereign governments have the ability to issue long term credit at zero interest for infrastructure (core infrastructures are energy, water, transportation, communications etc)and to an varying extent to “promote the general welfare” with schools hospitals, health services, all of which can be also viewed as infrastructure: a platform for private commercial activity to operate from.
Competent application of sovereign credit is the best thing governments do, and every successful national economy is based on it(successful does not include illicit economies like the UK which is based on frauds like “free trade” swindles).
Keeping it competent and avoiding problems like cronyism, Military Indistrial Corporate userpation, and nanny statism, is the responsability of the political class and ultimately the population.
But any leader who accepts a downgrade by Moody’s is a fraudster. Sovereign credit derives it’s value from the increasing creative and other capabilities of the citizens, and isn’t subject to market forces or volatility in a direct way, any nation that hands it’s credit over to swindlers that think that kind of credit rating is valid is doomed to unnecessary unjust squalor.
And to the Austrian Schoolers: if you guys do infrastructure, please lay some fiber to everybodies door because we’re all about to get microwaved in a big way if nobody does. What are you waiting for?
