Sunday, March 28, 2010

Debt: we will have to default


Denninger points out that if interest rates return to normal, two-thirds of taxes will go out to pay the rent on the debt. He urges default and says we should replacement private lending by banks, with direct money issuance by the government.
Whether or not his idea will come to fruition, this proposed desperate remedy shows that the disease is equally desparate.

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