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Why do Communists tend to to be Atheist?

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    #122
    realitykeeper
    Registered Users Posts: 4,138 ✭✭✭realitykeeper


    smacl wrote: »
    You don't seem to grasp how structured debt works. Once you can service it adequately it is in the creditors best interests that you continue to do so and they have neither the inclination nor the ability to foreclose. The cost of servicing the debt, while a painful draw on the public purse, is well within our means.

    Yes but as you know, when recessions come, the state always renegotiates its debt and borrows a lot more money. It does this because income from tax declines sharply, financial commitments (promises) still have to be paid for and payments on existing debt cannot be maintained without such measures. The problem is that the source of government debt is "printed" into existence by central banks and if the required amount is enormous, it can destabilize currencies. That is the scenario which will come with the next recession.


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    #123
    robindch
    Moderators, Society & Culture Moderators Posts: 24,399 Mod ✭✭✭✭robindch


    realitykeeper wrote: »
    Yes but as you know, when recessions come, the state always renegotiates its debt and borrows a lot more money.
    Except when it doesn't happen like - to pick just one example - in the Greece debt crisis where Greek notes were traded in at around 50% of their nominal value, for a longer period too - saving the Greek government something like $100 billion:

    https://www.economist.com/finance-and-economics/2012/03/17/the-wait-is-over


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    #124
    realitykeeper
    Registered Users Posts: 4,138 ✭✭✭realitykeeper


    robindch wrote: »
    Except when it doesn't happen like - to pick just one example - in the Greece debt crisis where Greek notes were traded in at around 50% of their nominal value, for a longer period too - saving the Greek government something like $100 billion:

    https://www.economist.com/finance-and-economics/2012/03/17/the-wait-is-over

    Yes like I say, governments renegotiate. The above did not happen without negotiations. And, by accommodating the Greeks, the rest of Europe had to compromise, in other words it got less than what was originally agreed.

    If the EU has to compromise too much with states like Greece, it`s own economic integrity will eventually be compromised.


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