Part 8/11:
Interestingly, the commonly held analogy that equates government finances to personal household budgets is misleading. Unlike households, governments possess the capability to finance their own debt. Furthermore, high levels of private savings in recent years provide a cushion for the government’s borrowing needs, allowing it to sell debt more easily. Presently, with surges in private-sector savings outpacing government debt accumulation, the potential for default seems mitigated.