Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
Display:
Lenders have a duty to due diligence.

Sovereign states have no duty to repay their creditors.

Don't like that? Don't lend money to sovereign states.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Tue Feb 14th, 2012 at 04:19:53 PM EST
[ Parent ]
well.

Nobody will lend you money if you stop paying it back.

Don't like that? Pay your debts...

It goes both ways.

by cris0 on Tue Feb 14th, 2012 at 04:30:06 PM EST
[ Parent ]
Sovereign states have no need to borrow money. They have a perfectly good printing press.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Tue Feb 14th, 2012 at 04:33:09 PM EST
[ Parent ]
That basically characterizes your whole argument.

Only in wishful thinking land money printing produces actual value.

But if you don't accept this reality, you can not be helped.

by cris0 on Tue Feb 14th, 2012 at 07:05:04 PM EST
[ Parent ]
Printing money does not produce real value.

Refusing to print money can destroy real value.

So when in doubt, print more money. If that doesn't solve the problem, print even more money while looking for other ways to solve the problem. The only harm that can do is inflation, which isn't actually harmful at all.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Tue Feb 14th, 2012 at 07:24:53 PM EST
[ Parent ]
Historically that isn't true,

States have always been able to default on their debts, and other states have always been willing to lend to them again afterwards, as other states are the only game in town.

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

by ceebs (ceebs (at) eurotrib (dot) com) on Tue Feb 14th, 2012 at 07:09:03 PM EST
[ Parent ]
Historically, states who default on their debts have faced the Gunboat Collection Agency.

Peak oil is not an energy crisis. It is a liquid fuel crisis.
by Starvid on Thu Feb 16th, 2012 at 08:29:38 PM EST
[ Parent ]
Historically, the Gunboat Collection Agency has considered it unsporting for its victims to field NATO weapons.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Fri Feb 17th, 2012 at 03:02:38 AM EST
[ Parent ]
Which is why I don't really mind the Greek overspending on defence...

Peak oil is not an energy crisis. It is a liquid fuel crisis.
by Starvid on Fri Feb 17th, 2012 at 03:46:23 AM EST
[ Parent ]

Display:

Top Diaries

Occasional Series