Sovereign Debt Can NEVER Be Repaid
Wherever you live in the world, you are pushing a huge rock uphill. You and I live in a world whose money, markets and financial system is TOTALLY dependent on the debt issued by government. In any form of rational economic definition, a debt is a deferred and therefore an UNFINISHED transaction. It cannot be completed until the principal plus interest incurred in its issuance have been repaid in full - and in money which retains the purchasing power of that which was borrowed to incur the debt.
No government debt has ever been or can ever be repaid in full. This is especially the case when a government imposes a monopoly on what can be used as money by passing and enforcing “legal tender” laws. The US did this with the introduction of the Fed in 1913. Eventual default becomes an absolute certainty when government makes its own debt paper the ONLY “reserve” behind the “money” it alone can create. The US did this under President Nixon in 1971. The whole world went along with it because the US Dollar was the reserve currency and no government or people anywhere dared jettison it.
The result is the global financial quagmire we see everywhere we look.
If there is going to be any progress towards a REAL solution to this mess, a necessary step is the recognition that governments MUST live within their means. Any social entity which must monopolise the use of force as a pre-requisite for its existence CANNOT be allowed to use that force to augment its power. That is what government debt always does, until the day comes when it collapses in ruins.
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