France latched onto the idea, because its borrowing capacity was also weaker than Britain s.

It is true that the US Treasury s ability to borrow will reach its legally authorized limit in early August.

As recovery continues, this public sector debt will increasingly crowd out private sector, local government and developing country borrowing.

And the Indian government played a large part in fueling rupee appreciation by easing companies ability to borrow abroad.

Tighter credit rationing will then further hamper the ability of households and firms to borrow, spend, invest, and sustain economic growth.

Time and again, banks woes have affected governments borrowing costs, and concerns over governments solvency have affected banks balance sheets.

So does the ability of households to borrow and lend in order not to be forced to match income and expenditure every day, week, month, or year.

They borrowed too much.

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.

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.

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.

This kind of crisis cannot be solved simply by ensuring that solvent borrowers can borrow, because the problem is that banks aren t solvent at prevailing interest rates.

First comes growth driven by foreign borrowing.

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

Markets noticed that the euro seemed caught between a rock (the EFSF s limited borrowing capacity) and a hard place (the European Central Bank s great reluctance to engage in large scale purchases of financially troubled governments bonds).

Compared to the private sector, local governments and state owned enterprises tend to have access to significantly cheaper funding, with the gap between official interest rates and shadow banking borrowing costs reaching as much as ten percentage points.

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.

James Madison, who would become the Constitution s principal author, couldn t borrow to buy land in frontier Virginia, because lenders lacked confidence that Virginia courts could enforce repayment.

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.

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.

And that is true here as well performing the role of reserve currency enables the US to borrow on the cheap, but at the cost of any significant influence over the exchange rate, which is determined by the rest of the world s demand for dollar assets.

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.

The cure for this mode a liquidity crisis caused by declining confidence in the financial system is to ensure that banks and other financial institutions with cash liabilities can raise what they need by borrowing from others or from central banks.

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.

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

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

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