The European Tribune is a forum for thoughtful dialogue of European and international issues. You are invited to post comments and your own articles.
Please REGISTER to post.
That is to say, if you want state-level (and below) consolidated government debt to be less than 60 % of GDP, you will have to let federal consolidated government debt (in the Eurozone that means central bank reserves and cash, but not ensured deposits in excess of the bank's reserves and cash position) to be in excess of 40 % of GDP (the consolidated government liabilities to GDP ratio is on the order of 100 % for most advanced industrial societies).
Friends come and go. Enemies accumulate.
Or, to put it in another way: Government bonds are a part of the money supply.
With a properly run central bank, cash and government bonds held by own residents contribute precisely equally to society's gearing: Not at all. (Foreign government bonds are different.)
by Frank Schnittger - Sep 18 63 comments
by Luis de Sousa - Sep 13 33 comments
by ARGeezer - Sep 7 60 comments
by Frank Schnittger - Sep 8 82 comments
by Frank Schnittger - Sep 4 18 comments
by Bernard - Aug 27 5 comments
by Frank Schnittger - Sep 1863 comments
by Luis de Sousa - Sep 1333 comments
by Frank Schnittger - Sep 882 comments
by ARGeezer - Sep 760 comments
by Frank Schnittger - Sep 418 comments
by Frank Schnittger - Aug 3014 comments
by Bernard - Aug 275 comments
by gmoke - Aug 27