Monday, November 26, 2012
26 Nov 2012
Greece Plan M has hatched. I'm sure it will be a stillborn like the rest of the plans. The problem is structural. The government borrowed more than it could ever raise in taxes from an aging / departing / suicide committing populace. I'm waiting for when people will start to ask why is it normal for a sovereign government to be able to borrow at all. Why should governments have credit ratings?
I get it, countries have "emergencies" (war, new infrastructure) that they need to borrow for. However, it becomes a problem when the government gets to declare what is an emergency and rely on their banker buddies to lend the money into existence diluting every saving citizen's wealth. Let's cut up the credit cards so people can go back to their lives. Governments only spend what they can raise in tax revenue without needing violence. It's that simple.
at 10:17 PM