Money is power. But it is more powerful when it’s within your control and reach to exercise your will, so that you are able to impose punishment or grant relief.It is the same at a broader level. For governments to exercise punishment requires courts and prisons or indeed the entire judicial system to function. Conversely, relief means government ensures availability of medicines in hospitals, electricity in homes and factories and so on. Both these scenarios require availability of money. This is simplistic but true.For an economy to survive, government must protect its principal (domestic) sources of income. This is sovereignty. An exercise of power for the preservation of the national interest.So, when Zambia selectively defaulted on part of its foreign debt in November 2020 ratings agencies and other experts treated this as a prophecy fulfilled. Government had been warned of excessive external borrowing relative to the country’s ability to service debt. Because of this action […]
CREDIT, PRODUCTION AND SOVEREIGNTY
