December 9, 2012

DEBT: “Two fundamental facts have created an apparently insoluble dilemma for the global economy, and have turned countries like Argentina and Greece into victims of an impossible logic. First, debt continually grows; second, there is no really satisfactory way of getting rid of it. . . . The analogue in the world of debt negotiation is that a new start that allows borrowing to begin all over again is also impossible. A cleanup is impossible. That leaves only one solution: pile on new claims to such an extent that old debts appear paltry. Those who cannot forget the past are condemned to inflate it.” Oh, goody.