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In terms of borrowing power, governments hold a position of privilege derived primarily from the ability to print the money they need to repay debts which really means the ability to devalue the currency when debts become onerous.
The argument that it isn't revolves around the suggestion that what really matters is borrowing in your own currency – in which case the US and the UK are, in terms of borrowing costs, like Japan rather than Greece.
This increase would leave the average UK household with non-mortgage borrowing of close to £10,000 by the end of 2016, taking consumers into uncharted territory in terms of borrowing levels, the report said.
Mr. Cohen said that the demand for high-yield bonds is keeping the lawyers who work on the projects busy and giving them freedom to take more and more liberties with the terms of borrowing.
The move was another shot in the arm for investors, who responded positively to the Federal Reserve's surprise decision to reduce the discount rate from 6.25% to 5.75% on August 17th and extend the terms of borrowing for such loans.
I think the other thing to remember is before this release we were already behind schedule in terms of borrowing for the year as a whole, so it does take in a risk for an upward revision to government borrowing requirements coming November.
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Operation Twist Redux, announced on Wednesday, is designed to lower the long-term cost of borrowing by selling short-term debt and buying longer-dated bonds.
With low-term cost of borrowing for governments so low, the case for more spending on infrastructure is strengthening.
That process now appears to be unwinding, as the long-term cost of borrowing rises on speculation that the US Federal Reserve is preparing to curtail its monetary stimulus programme, perhaps as soon as next month.
But the cost may be largely a political one, for the coalition, rather than an economic one: there has already in recent weeks been a smallish rise in the long-term costs of borrowing for the Treasury, which may be markets discounting the ratings downgrade.
While personal loan rates are usually fixed for the term of borrowing, credit card rates are subject to change.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com