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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: KyrosL who wrote (93424)	8/13/2012 10:52:15 AM
From: elmatador	Respond to of 219642

You lend at variable interest rates. Once country loaded, jack up interest rates. Debtor export and use exports' income to pay interest and principal. The income from exports is capital being exported. Consider: Greece would need to export like mad to have Euro income to pay for its debt. If EZ jack up interest rates like Paul Volcker did, Greece will be fleeced. Greece, if it was a country like others that pay its debt would be exporting its capital. US, will need to increases its exports to pay its debt, because it imported capital from countries that bought its treasuries. Thus US needs to export capital. That is why I say: consumption in the US and governing spending will go lower.