2 replies to this topic

[I am The Best23]

The proposed idea is to in essence allow governments to issue bonds to the public or other country governments to purchase. They would be able to of course set the term length, interest rate, coupon payments, and amount available to purchase. The bonds would be paid out automatically as long as there are enough funds in the treasury at the time of maturity. If there aren't enough funds and the government defaults on their debt, that would be the risk investors take, but would clearly identify that country as much riskier and therefore would make it much harder and more expensive to ever raise capital in the future.

 

There could also be a secondary market for the bonds for investors not wanting to hold until maturity or just wanting to buy/sell for any reason like you would in the real world. There may be more to it than this and I would be happy to help develop the idea but not sure if it is needed/wanted so curious if anyone as feedback positive or negative.

[beebeam]

This is good idea, but I think it's also good if the government can only sell it in a specific day (not every day) so we will have demand/supply for the secondary market
and only governor and President/Dictator/Prime Minister can issue it like how MoD, MoFA, and President/Dictator/Prime Minister can deploy allied force

actually, we have it in Indonesia before the last resource war and once before it (which I don't know exactly when)

[Amber Flame]

The proposed idea is to in essence allow governments to issue bonds to the public or other country governments to purchase. They would be able to of course set the term length, interest rate, coupon payments, and amount available to purchase. The bonds would be paid out automatically as long as there are enough funds in the treasury at the time of maturity. If there aren't enough funds and the government defaults on their debt, that would be the risk investors take, but would clearly identify that country as much riskier and therefore would make it much harder and more expensive to ever raise capital in the future.

 

There could also be a secondary market for the bonds for investors not wanting to hold until maturity or just wanting to buy/sell for any reason like you would in the real world. There may be more to it than this and I would be happy to help develop the idea but not sure if it is needed/wanted so curious if anyone as feedback positive or negative.

I've shared this with the devs.