Glen, He is correct, with one unspoken addition: You can't go broke if you can print your own money AND the creditor will accept it.
If you have a bookie who accepts RopellaBucks and pays in green backs, you will be good forever! If Greece can borrow dollars and pay in their own currency, same deal. I'm not sure how international borrowing works, but eventually someone will stop accepting your currency if it has devalued too much. At some point after that, other people will stop trading for it too, so you won't even be able to convert your RopellaBucks into usable currency. Then, in the long run, you might be even more screwed than the semi-screwed you are in the short run from being stuck on the Euro, with no ability to escalate printing. Eric On Thu, Oct 7, 2010 02:14 PM, "glen e. p. ropella" <g...@agent-based-modeling.com> wrote: > Sorry if I'm beating a dead horse... I think I saw it move. I'm still >trying, in my own lazy way, to figure this out. Here's Warren Buffett: > >"You can't go broke if you issue debt in your own currency." > >"If Greece could print its own currency, you might have enormous >inflation, but you'd never have a default on debt now." > > http://www.youtube.com/watch?v=eA68Kl77gzE > >My gut tells me this isn't quite true... or there are details he's >leaving out. > >-- >glen e. p. ropella, 971-222-9095, http://agent-based-modeling.com > > >============================================================ >FRIAM Applied Complexity Group listserv >Meets Fridays 9a-11:30 at cafe at St. John's College >lectures, archives, unsubscribe, maps at http://www.friam.org >
============================================================ FRIAM Applied Complexity Group listserv Meets Fridays 9a-11:30 at cafe at St. John's College lectures, archives, unsubscribe, maps at http://www.friam.org
