scepticus Posted July 12, 2010 Share Posted July 12, 2010 You create a supranational bond. Swap it with the national bonds. Forever tax the nations concerned. You as supranational body take on the risk. You show a clean face to people who hold your bonds. It's coming I tells'ya. indeed it is. he banker is dead. long live the bancor. Quote Link to comment Share on other sites More sharing options...
dissident junk Posted July 12, 2010 Share Posted July 12, 2010 Technically, if a state goes but, shouldn't all it's assets be sold to pay the debts? All those government building, hospitals, schools, road. The ability to tax the population is also an asset. Strangely though, people aren't talking about state bankruptcy, they are merely talking about fraud... where the state defaults on it's debts but keeps all it's assets. In reality, everything should be sold off... even territory. Greece is already doing this, selling off its rail, peninsulas, islands etc. What worries me is that some bright spark might start suggesting backing debt with land, which then would then become seized if the state defaults. The real issue is who will buy this stuff? Who has the money right now? And do you really want them to have financial control of such assets? There is a point where significant foreign national ownership of assets undermines sovereignty and democracy to an extraordinary degree, and then you need to rely on allies with firepower to uphold international recognition of national sovereignty over such assets. The political implications of such outcomes and moves are horrendous; Greece could end up being more or less a vassal state, part of a foreign economic empire, in all but name. I have no idea why so few recognise that control of national debt and national liabilities is vital for sovereignty, democracy, and peace. I hate to say this, but I fear this is going to all end up ... well, I don't want to say it. Quote Link to comment Share on other sites More sharing options...
exiges Posted July 12, 2010 Share Posted July 12, 2010 In return for agreeing to a debt haircut, creditors would have the rest of their investment guaranteed Well that's big of them Lend me a £1000 and I GUARANTEE you'll get £500 back Quote Link to comment Share on other sites More sharing options...
scepticus Posted July 12, 2010 Share Posted July 12, 2010 noone is eesentially dealing with the root cause of the problem in a drastic enough fashion ie govts spending beyond their means.todays back of fag packet calcs are tomorrows fish and chip paper. that is not the root cause. The deficits are so that the private/corporate sector can continue to record profits even while the consumer sector has essentially zero purchasing power. This latter point is the root cause. The total credit extended to households to date to enable them to keep buying stuff is the sum of private household debt plus the national debt. Quote Link to comment Share on other sites More sharing options...
thecrashingisles Posted July 12, 2010 Share Posted July 12, 2010 (edited) Berlin Mullset Haircut Plan For Insolvent Emu States They'll make them walk around looking like this: Edited July 12, 2010 by thecrashingisles Quote Link to comment Share on other sites More sharing options...
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