There is, surely, a fundamental difference between lending money to a household, a company and a government — and a difference that makes the characterisation of the latter as risk-free as rather odd. Heads of families cannot tell creditors that “Sorry, we’ve had a vote. I would pay you back but was outvoted by the wife and kids”. In the middle ages, lending to monarchs was the ruin of many bankers; the French even executed some creditors. A debtor who can change the laws is a risky beast.
— Buttonwood’s Notebook: “Political Commitment”
