The government pays interest rate because it wants to look good internationally, otherwise it wouldn't even pay the "low interest rates". Explain to me how in the world the governments use trees to make money and a machine and then they have to borrow money. They can make as much money as they want and they would go and borrow money. This procedure is just crazy since the government has monopoly on all trees in their states. There is something more sinister to this method. Another thing is that the government can lend money tons of money to other third world countries, but is in debt itself. The government always find millions to invest in wars, but is in debt.
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