How nice. No one learned anything.
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.