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Politics : Dutch Central Bank Sale Announcement Imminent?
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To: sea_urchin who wrote (16584)12/18/2002 11:28:25 AM
From: Ahda  Read Replies (1) of 81177
 
Dollars are created to match the value of objects. When you had dot coms move from 1 to 100 dollars were printed to match the market value of those stocks.

A debt is treated as an asset of the books until the debtor goes into default.

So when you have an enormous amount of loans the plus balance increases.

This same loan procedure could be applied to IRAQ, now I am being funny.

We the US people theoretically could be responsible for this debt but I think the dollars are not there until they are put on the books as a loan. As long as Israel doesn't go into default it is a plus for US balance sheets. It is the default bit that screws the whole thing up.

I dont know for sure but it could be the loans are given and the dollars are then created to match the loan rather than taken out of the balance of the Nation. The possibilities with paper are endless until the economic structure does not produce.
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