In the current "The Week" magazine, there's an item on the chaos that's breaking out in the Eurozone, and it mentions this about Italy:
"Italy's finances are basically sound: it has a high level of debt ... but that debt is largely funded from within Italy and is well managed by the country's respected finance ministry."
I admit I am no economist or financier, but let's look at this. What does a debt being "funded" mean? Surely whoever "funded" a debt lent the money? So Italy has lent money to itself? The people of Italy have lent money to their own government? How is the government going to pay them back?
And what does a debt being "managed" mean? Does it mean it is being paid back? If not, what?
No comments:
Post a Comment