Debt is not a concern for a country like the UK, where we have our own central bank and currency and have issued almost all our national debt in sterling. We cannot go bust because by definition we can always pay our sterling debts.The nation's trying this stunt still default because they end up paying long term rates for short term spending.
Consider the USA. Right now government pays 2.25%, above the current tax growth by a point. We are payng the 30 year rate for spending when we usually pay the ten year rate. She can get this rate with a little math:
Take total debt including SS, then divide that into total interest charges. We pay this because our interest rates from the past, which we are still paying, has been 3-4%. We have a rollover crisis.
Further more, we defaulted in 1972 and 1932, some 40 years between defaults which is typical for a government which follows the horse manure from Naked Capitalism. The USA does default on a regular basis, been defaulting since the founding and before.
Notice the curve is flat? That means we have already contracted, already we are in the default spiral and Naked Capitalism cannot 'expect' us out of the spiral.
Most of the crappola from Naked Capitalism comes from the talking points of hydraulic Kenesianism. The economy is not fluid, it is deliberately quantized by the banking system because goods come in baskets and trucks, frankly to make it simple for her.
The USA has the worse situation because we get sudden stops as our legislature is not proportional in its deliberation, a problemof having the small states default first and shutting down the legislature.
The Fed is actually losing market share as it mainly funds government debt. Thus the market will continue to melt up, he market offering an alternative money system. We have melt up until the sudden stop,which the small states are about to cause.
There is no fraud that Naked Capitalism can produce this I cannot dissect almost immediately and debunk.
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