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So who is going to fund the banks once the equity capital dissipates?
Greece will become just one more 3rd world craphole. No one with any sense will invest in or lend money to Greece once they have proven that they are unreliable, irresponsible borrowers. I would expect that they would be thrown off the Euro and have to get by on their own currency-which should have about the same value as Weimer Republic marks did back in the day. It's sad the creditors that invested the money that Greece borrowed will lose out to these deadbeats. I hope the rest of the European economy survives the blow.
Greece will become just one more 3rd world craphole. No one with any sense will invest in or lend money to Greece once they have proven that they are unreliable, irresponsible borrowers. I would expect that they would be thrown off the Euro and have to get by on their own currency-which should have about the same value as Weimer Republic marks did back in the day. It's sad the creditors that invested the money that Greece borrowed will lose out to these deadbeats. I hope the rest of the European economy survives the blow.
If Greece has its own currency, it doesn't need to be lent any money.
No one lends money to the United States, UK, Canada, or Australia....
If Greece has its own currency, it doesn't need to be lent any money.
No one lends money to the United States, UK, Canada, or Australia....
Would you care to test that theory? I think you will find that China alone has many hundreds of billions, if not trillions of dollars, in US treasury notes. Lending both between nations and to businesses within those countries is common. But much like private individuals would be fools to lend money to individuals that have "stiffed" them by borrowing and refusing to repay a loan, nations would as well. Individuals have some recourse in court to get their money back, in the form of leins on property, asset seizure, etc. I have to wonder if the same isn't true among nation-states. Germany could find itself with some fine beachfront property if there is any justice.
A country, much like an individual, can not grow by spending money that they don't have. Should Greece willingly become deadbeats they should be treated as such.
Would you care to test that theory? I think you will find that China alone has many hundreds of billions, if not trillions of dollars, in US treasury notes. Lending both between nations and to businesses within those countries is common. But much like private individuals would be fools to lend money to individuals that have "stiffed" them by borrowing and refusing to repay a loan, nations would as well. Individuals have some recourse in court to get their money back, in the form of leins on property, asset seizure, etc. I have to wonder if the same isn't true among nation-states. Germany could find itself with some fine beachfront property if there is any justice.
Any comparison between government finances and personal finances is invalid. You don't understand economics.
Quote:
Originally Posted by thecoalman
How did they get to this point?
You tell me smart guy.
How can a country "tax" and "spend" what wasn't created yet?
Any comparison between government finances and personal finances is invalid. You don't understand economics.
The fundamentals are the same. Governments have the ability to delay, but not prevent, the inevitable. I suspect you have never taken an economics course.
The fundamentals are the same. Governments have the ability to delay, but not prevent, the inevitable. I suspect you have never taken an economics course.
No, governments that issue their own fiat currency can't "live beyond their means." They have no means to live beyond.
Like I said, how can a government tax what doesn't exist yet?
Who is going to force the United States into default? Ted Cruz?!?!
Money is debt, wise guy. That's how it is created. Poof!
Money is created by deficit spending.
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