The financial markets encouraged consumers to borrow by introducing ever more sophisticated instruments and more generous terms.

In the face of high systemic risk, private capital is leaving banks and the sovereign debt markets, causing governments borrowing costs to rise and bank capitalization to fall.

As international capital markets developed in the early nineteenth century, state governments borrowed on a large scale, quickly turning them from creditors into debtors.

They borrowed too much.

Russia s worsening credit rating and the tougher borrowing terms in the international market are forcing Russia to compete harder for capital.

But when businesses and consumers try to borrow, they find that it is very costly, if not impossible.

Borrow from foreign and domestic lenders.

While local governments have been unable to borrow, locally controlled state investment companies can.

A wiser strategy would have been to boost investment by using financial intermediation to allocate these funds to firms that are being crowded out of domestic capital markets by excessively high borrowing costs.

America s colossal fiscal gap readily calculated using projections by the Congressional Budget Office is close to 1,400 of GDP and dwarfs US official debt, which totals 9 trillion (60 of GDP).

It winds up borrowing temporarily with short term debt then, as borrowing accumulates, it is refinanced with longer term securities.

The risks will undoubtedly grow if sub national authorities and private sector entities gain similar access to the international capital markets, which could result in excessive borrowing.

It is appropriate to finance (some) long lived public capital investment by government borrowing, since the benefits will accrue for many years, and future taxpayers might equitably bear part of the burden.

First comes growth driven by foreign borrowing.

And what, really, is so humiliating about borrowing from your own citizens?

A well capitalized World Bank leverages all its shareholders investments by pooling them and then raising five times the capital by borrowing in financial markets.

Obama s long run budget calls for much higher spending, higher taxes, and an explosion of debt that will crowd out borrowing in capital markets by private companies, state and local governments, and developing countries.

Indeed, those who can borrow (high grade firms and prime households) don t want or need to, while those who need to highly leveraged firms and non prime households can t, owing to the credit crunch.

3. Stresses the importance of promoting responsible borrowing and lending

High borrowing costs are needed to focus minds and instill discipline.

Farmers borrow money from usurious private lenders.

So this brings us to the need to increase normal access limits.

But they have not prevented a borrowing binge in their private sectors.

Explanatory note on outside commercial borrowing

Stresses the importance of promoting responsible borrowing and lending

Borrowing is also supported by an easing of credit standards and new financial products that increase leverage and widen the range of assets that can be borrowed against.

Just as lenders did not force money on the public before the crisis, so now they cannot force heavily indebted households to borrow, or businesses to seek loans to expand production when markets are flat or shrinking.

But when politicians say growth, they mean borrowing.

Reborrowing is the process where a word travels from one language to another and then back to the originating language in a different form or with a different meaning.

France is southern in its current account deficit, but northern in its borrowing costs (slightly above Germany s), owing partly to inflows of capital fleeing the south, as well as to modest but positive economic growth.

Spanish borrowing costs are also rising.

Real interest rates may rise, as America borrows more and more.

Businesses will want to borrow, and banks will want to expand their lending.

Their governments have no choice but to borrow from the Fund.

The viability of outside commercial borrowing was examined with the assistance of a financial consultant.

It is one thing to borrow to make an investment, which strengthens balance sheets it is another thing to borrow to finance a vacation or a consumption binge.

Then panic spread to credit markets, money markets, and currency markets, highlighting the vulnerabilities of many developing countries financial systems and corporate sectors, which had experienced credit booms and had borrowed short and in foreign currencies.

Of course, the US government claims to want to rein in borrowing.

If they did that, they could not borrow at all.

In practice, it is only banks that have access to cheap borrowing, so they can reconstitute their balance sheets by borrowing cheaply and lending expensively.

Following a request by a member state, the Commission would be entitled to borrow on capital markets under the implicit EU budget guarantee, with the maximum amount determined by the size of the country s unused (pre allocated) Structural and Cohesion Funds.

And raising borrowing costs for governments with dangerously heavy debts thereby discouraging them from further borrowing is precisely what we should want to do.

The best money is not so much smart as it is experienced.

This level of borrowing poses a new type of financial risk for China.

Now these heavily indebted households cannot borrow and spend any more.