https://www.investopedia.com/terms/b/bond.asphttps://www.muni360.com/?cmpid=rac400118:360:oath:gemfiadv_ntv:1200_627:c4
Municiple bonds are the principle mechanism for financing and funding infrastructure and cities.It is this vehicle that is the primary reason capitalism works in the long term.Pension funds,venture capital,Insurance bonds and equity,Hedge funds,401k IRA,ect are invested into municipal bonds which mature over a period certain.A bond may be 10 to 50 years.The money is payed back or financed through taxes, tolls,Interest,Capital gains ect.As the bond is being serviced its value increased by the year.Bond traders can hold it or sell it at a projected price based on the countries credit rating.The beauty is the country gets the neccesary capital to build its roads,telecom,hospital and healthcare,schools,railways,electricity.The country has to be able to show growth and meet benchmarks.This is done through analytics and metrics.
Supply Side Economics...Is the theory that the more of a supply of human capital,natural resources,services,of not just needs but wants and demands the econpmy will grow faster than just focusing on basic consumption.The main thing is the demand and expectations of the population as the determining factor of how a nation will develop.If you have educated people from a society that has first world expectations,then the demand will be for those same accomadations.Desire and demand are two different things.The Afrikan diaspora are in a position of demand as far as their expectations for a new Nation state.
Comments
Yes as long as the government stays in the red and practice fiscal restraint and sound economic growth it can float as many bonds as the GDP can project