“It’s not like your household. In your household, people are saying, ‘Oh, you can’t spend money you don’t have.’ That is true for your household because nobody is going to lend you an infinite amount of money. When it comes to the United States federal government, people do seem willing to lend us an infinite amount of money. … Our debt is so big and so many people own it that it’s preposterous to think that they would stop selling us more. It’s the old story: If you owe the bank $50,000, you got a problem. If you owe the bank $50 million, they got a problem. And that’s a problem for the lenders. They can’t stop lending us more money.”
They Can't Stop Lending Us More Money
So proclaims the self-anointed King of New York Michael Bloomberg, the question is... how many of you buy that statement?One need look no further than Europe or Latin America to know that this statement is complete and utter bullshit. Both banks and countries do stop loaning money to debtor nations as has happened over and over again throughout history. Think we're different?
No Problem... just keep borrowing
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