Quote: (11-28-2013 09:55 AM)RichieP Wrote:
(BTW, people talking about countries "loaded with debt" need to read this: http://coppolacomment.blogspot.co.uk/201...nk-it.html - National debt is very different from personal debt!)[/align]
I did read it:
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Most central banks - with the notable exception of the Federal Reserves - were originally created to fund governments, but their role has changed over the centuries and we have now reached the interesting position where central banks are not allowed to fund governments directly, though they can and do fund them indirectly via the banking system. But there is no reason under a fiat money system why a sovereign government could not simply instruct its central bank to issue money to meet spending commitments, rather than issuing debt.
"we have now reached the interesting position" "There is no reason . . . . " Seriously?
Yes, we have now "reached the interesting position" of engaging in a massive experiment with unknown consequences that impacts the entire worldwide economic system. It sounds more like we have reached a foolish position. It sounds like a band of spider monkeys tinkering with a neutron bomb.
I would humbly suggest that you read the thread on Nassim Taleb's new book regarding the fragility of systems, especially the world's fragile worldwide economy which consists of independent but interwoven economic systems. Does that sound like something on which to experiment considering the potential for extreme worldwide dire consequences, especially in light of what happened in 2008 -- and what almost happened in 2008?