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same currency, same 27 nation-states, same rates, same liabilities and income. m'k.
What do you mean? This doesn't apply to the EU27, not even for the eurozone, let alone to the EU and the UK together.

A society committed to the notion that government is always bad will have bad government. And it doesn't have to be that way. — Paul Krugman
by Carrie (migeru at eurotrib dot com) on Fri Aug 24th, 2018 at 06:11:14 PM EST
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(a FT column title and a classic joke about incongruent measures of risk-free government debts)

The reporter stated: "A deal that results in both sides recognizing their regimes as equivalent would avoid that scenario."

You and I agree (somewhat) that this statement is preposterous.

I snidely disagreed with it -- on its face, in principle and in practice: The supposition "same currency, same 27 nation-states ["regimes"], same rates, same liabilities and income" is patently false.

You agreed with with my response before you disagreed with my response: "That's an atrocious article from Bloomberg"; "This is not as bizarre as it seems at first blush." An elaborate discursion into capital classes, capital stipulations, capital requirements, and regulatory enforcement* prerogatives presumed to balance an equation of comparable risk-free debentures ensues.

The fact remains: Neither government bureaucracies nor central bank governors operate non-profit enterprises, sadly, desperately. P > R-C

* without the bother of σ: primary and secondary price "signal" variance, rating agencies' "signal" variance, taxation authority and income variance, FX reserve S/D variance, and one of my personal favorites, "eligible" collateral (surety) variance.

Diversity is the key to economic and political evolution.

by Cat on Fri Aug 31st, 2018 at 04:05:52 PM EST
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