Comments on: Entering the age of default http://blogs.reuters.com/felix-salmon/2010/07/06/entering-the-age-of-default/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: gramps http://blogs.reuters.com/felix-salmon/2010/07/06/entering-the-age-of-default/comment-page-1/#comment-16474 Wed, 07 Jul 2010 16:08:42 +0000 http://blogs.reuters.com/felix-salmon/?p=4577#comment-16474 ..and what happens when the people stop recognizing the so called “sovereign” as sovereign ? the quaint old “by the consent of the people” thing ? it might suprise how much this is now taking place..thanks to Felix and Jim, and Reuters, for these excellent articles..

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By: minipaws http://blogs.reuters.com/felix-salmon/2010/07/06/entering-the-age-of-default/comment-page-1/#comment-16467 Wed, 07 Jul 2010 13:19:47 +0000 http://blogs.reuters.com/felix-salmon/?p=4577#comment-16467 Is Illinois too big to fail?

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By: williambanazi7 http://blogs.reuters.com/felix-salmon/2010/07/06/entering-the-age-of-default/comment-page-1/#comment-16466 Wed, 07 Jul 2010 13:12:22 +0000 http://blogs.reuters.com/felix-salmon/?p=4577#comment-16466 EURO STRESS TESTS:

http://williambanzai7.blogspot.com/2010/ 07/european-stress-tests.html

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By: mckibbinusa http://blogs.reuters.com/felix-salmon/2010/07/06/entering-the-age-of-default/comment-page-1/#comment-16465 Wed, 07 Jul 2010 12:45:39 +0000 http://blogs.reuters.com/felix-salmon/?p=4577#comment-16465 The plight of the states does indeed create a dilemma for monetary propagandists given that the states cannot print money. Ironically, this same issue is what sunk Greece, Spain, and Portugal, who surrendered their printing presses as they joined the EU (just as the states do as members of the US). What political message can be used to conceal the looming fiscal disaster contained within almost every state in the union? Moreover, what of default and its implications as a way to go forward? The political debate in our society is likely to proceed into unknown philosophical spaces as the reality of local and regional economic depression begins to challenge the top-down political regimes of Federalism…

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By: Rikh http://blogs.reuters.com/felix-salmon/2010/07/06/entering-the-age-of-default/comment-page-1/#comment-16462 Wed, 07 Jul 2010 09:59:23 +0000 http://blogs.reuters.com/felix-salmon/?p=4577#comment-16462 1. Imho defaults will rise, simply because the standard method of solving things at central government level, throwing money at problems, and a lot of it, will at least be more difficult and within some countries even umpossible.
2. I donot think that such a default is per definition a sign of an economy in bad shape. Eg state governmennts are governments and those often overspend (at any level).
Central governments have other means to solve the problem, but imho that only means that the danger signs can be places further away.
3. Default gives the problem that you become at least for a few years a pariah with creditors. Massive numbers of defaults will make the markets nervous.
4. Problem is different in the EU compared to the US. US economy usually grows faster but mainly it has a growing population and growing workforce. Which means that EU, with its aging population should have built up some reserves instead they only built up a lot of debt. Plus that there is upward pressure in such a society on debtlevels from off balancesheet guarantees (pensions) that become real money to pay.
5. 1-2% deficit with a growing economy might not be such a bad idea, the problem however is that most governments don’t leave it with that.

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By: Publius http://blogs.reuters.com/felix-salmon/2010/07/06/entering-the-age-of-default/comment-page-1/#comment-16460 Wed, 07 Jul 2010 02:46:28 +0000 http://blogs.reuters.com/felix-salmon/?p=4577#comment-16460 I know this may seem hopelessly wonkish and naive, but didn’t Ed Prescott show that in a growing economy with a growing population a modest deficit (1-2%) is *more* efficient than a balanced budget? Economics may be too important to leave to the economists, but we shouldn’t ignore them, should we?

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By: DanHess http://blogs.reuters.com/felix-salmon/2010/07/06/entering-the-age-of-default/comment-page-1/#comment-16456 Tue, 06 Jul 2010 23:01:28 +0000 http://blogs.reuters.com/felix-salmon/?p=4577#comment-16456 Felix, wouldn’t we be bailing out Illinois already, if they were the first in line for bailouts, instead of fifteen (after Goldman and banks, auto companies, the housing market, the unemployed, etc etc)?

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