Wednesday, Apr 07, 2010

Common sense

TheLondon Irvine Report: More on “God’s Work.”

"There is no example of a nation become rich by paying its debts. There are dozens of examples of nations becoming rich by defaulting or renegotiating."
We open today with the rise of the just default camp, in the world of sovereign debt. Since much of the debt was accumulated corruptly, between brain dead or venal politicians on the take, and great vampire squids aiding and abetting a crime on the public, just default, and let the great vampire squids take the heat and most of the loss. Kings and countries have been doing it since time immemorial, this time it's not different after all.

Posted by devo @ 02:17 PM (806 views) Add Comment

7 Comments

1. devo said...

The building up of unsustainable debt loads is a commonplace in history. There are several standard means of resolving he problem: execute the lenders, exile them, default outright or simply renegotiate to achieve partial default and low interest rates.

John Ralston Saul

Seems like a guy worth listening to. Another memorable quote...

A Big Mac - the communion wafer of consumption

Wednesday, April 7, 2010 02:47PM Report Comment
 

2. inbreda said...

I take it you are counting rampant inflation as default?

Wednesday, April 7, 2010 02:52PM Report Comment
 

3. devo said...

2. inbreda said... I take it you are counting rampant inflation as default?

Doesn't that come immediately after the default?

Wednesday, April 7, 2010 02:59PM Report Comment
 

4. inbreda said...

I would have thought that money printing by the government would be a way of causing inflation as a method of effectively defaulting - without actually refusing to pay.

Wednesday, April 7, 2010 03:59PM Report Comment
 

5. devo said...

they tried that

it didn't work

but you know that already

so why are you suggesting it?

Wednesday, April 7, 2010 04:30PM Report Comment
 

6. mdmick said...

I have a blog too.
It's not got much to do with common sense economics.
Can I post it on this site as well?
I can define define default as well:
default ain't mine! default is yours!

Wednesday, April 7, 2010 07:37PM Report Comment
 

7. inbreda said...

they tried what?

Are you talking about QE? Surely that is just a money shuffle to keep bond prices up so they can keep IRs artificially low to prop up the bubble - that's the exact thing that will collapse if they try inflating away the debt

Wednesday, April 7, 2010 08:48PM Report Comment
 

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