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I mean, a government can always create its own fiat currency without borrowing it. The conventional mechanism is to issue bonds and have the central bank create new currency to buy them off the treasury. There is "debt" on paper only.

wouldn't that look bad?

is it a buck-stopping-elsewhere thing?

why go the bother making two stages out of one deal, ass-covering, deniability issues?

whom, exactly do they think they're fooling?

if enough of the public understood, would they be able to call it honest?

'The history of public debt is full of irony. It rarely follows our ideas of order and justice.' Thomas Piketty

by melo (melometa4(at)gmail.com) on Thu Sep 3rd, 2009 at 10:15:25 AM EST
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You could always do it like Hitler.

En un viejo país ineficiente, algo así como España entre dos guerras civiles, poseer una casa y poca hacienda y memoria ninguna. -- Gil de Biedma
by Carrie (migeru at eurotrib dot com) on Thu Sep 3rd, 2009 at 10:21:30 AM EST
[ Parent ]
That is very similar to several local currencies in use in the USA, such as Amesbury Hours.  Most are denominated in terms of some common calculation of the worth of an hours labor.  I.E. an hour of time from a doctor or a lawyer would be worth more units than an hour of yard work. And the units are only accepted locally.

"It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Sun Sep 6th, 2009 at 01:37:45 PM EST
[ Parent ]


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