Because One Can Never Get Back To Borrowing Money Quick Enough!

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How nice.  No one learned anything. 

Exclusive: Euro zone mulls help for Portugal, Ireland market return – sources

Do people not realize there is no requirement, economic or otherwise, to force a government to indebt the people in order to run the government?

I blame Adam Smith.  Not because his thoughts weren’t of great value, they were.  But, because he didn’t understand how some people would react to the knowledge gained.

So, Portugal and Ireland are in a hurry to get back to the borrowing game.  Apparently, the monetary supply people have come to the conclusion there’s no downside to this.   Just borrow and print money.  And if there’s inflation, no worries, the debt loses value.  Of course, this requires to borrow more money simply to maintain the various support of government programs and whatnot, which increases the debt burden, which causes more borrowing…  Anyone believing this can occur in perpetuity is deceiving themselves. 

Many nations now have a great opportunity to return back to sane economic and monetary policy.  They seem to be running from it as fast as they can.  

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One Response to Because One Can Never Get Back To Borrowing Money Quick Enough!

  1. DirkH says:

    Looking forward to a further decline of the Euro.

    “Under the preferred option, Ireland and Portugal would be allowed to backload their loan repayments, but remain within the timeframe of their existing overall schedule.
    That would imply no substantial change to the aid agreements, and therefore would not require Bundestag approval, one of the sources said.”

    Wonderful! So we don’t have to ask the representants of the electorate!

    Waiting for the OMT. We’ll all be rich.

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