Wednesday Open Thread | 44 comments (44 topical, editorial, 0 hidden)

Reuters: Cash-strapped Berlin stalked by 540-year-old debt

A certificate of debt, found in a regional archive, attests that Mittenwalde lent Berlin 400 guilders on May 28 1562, to be repaid with six percent interest per year.
According to Radio Berlin Brandenburg (RBB), the debt would amount to 11,200 guilders today, which is roughly equivalent to 112 million euros ($136.79 million).
Adjusting for compound interest and inflation, the total debt now lies in the trillions, by RBB's estimates.
...
"This case shows that debts always catch up with you, no matter how old they are," Nussbaum told the Berliner Zeitung paper.

If you are not convinced, try it on someone who has not been entirely debauched by economics. — Piero Sraffa

by Migeru (migeru at eurotrib dot com) on Wed Jul 18th, 2012 at 03:35:02 PM EST

Re: German morality plays (none / 0)

Or no matter who you are?

by afew (afew(a in a circle)eurotrib_dot_com) on Wed Jul 18th, 2012 at 04:00:42 PM EST
[ Parent ]

Re: German morality plays (none / 1)

Sunt Pacta Servanda?

Then again, there are precedents...

Europeans think a hundred miles is a long way. Americans think a hundred years is a long time.

by Bernard on Wed Jul 18th, 2012 at 04:12:59 PM EST
[ Parent ]

Re: German morality plays (none / 0)

Berlin could respond that there is no evidence that the debt has not already been paid. :-)

As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."

by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Wed Jul 18th, 2012 at 08:13:23 PM EST
[ Parent ]

Re: German morality plays (none / 1)

http://coppolacomment.blogspot.co.uk/2012/07/the-shoebox-swindle.html?m=1

Any idiot can face a crisis - it's day to day living that wears you out.

by ceebs (ceebs (at) eurotrib (dot) com) on Wed Jul 18th, 2012 at 09:48:43 PM EST
[ Parent ]

Wednesday Open Thread | 44 comments (44 topical, 0 editorial, 0 hidden)