What does it mean when a loan is "backed by the government"?

It means taxation is theft

>>1749085
it means that unless the government goes bankrupt the loan will be paid off. That makes it very safe unless you live in a shithole

>>1749563
this

its also the reason why you have to accept payment with their fiat that is not backed by gold or silver

>>1749085
If a loan cannot be paid off, the government will pay it off.

>>1749563
that's not what it means here, it means if the loan has a maxed rated then the state will pay the difference if the interest rates hike over it.

it's good for the debtors and the financial entities very bad for taxpayers tho.