“And thus you will dance to your death here, on this hilltop, at the end of the day. An din your last dance you will tell of your struggle, of the battles you have won and of those you have lost; you will tell of your joys and bewilderments upon encountering personal power. Your dance will tell about the secrets and about the marvels you have stored. And your death will sit here and watch you.”
Carlos Castaneda

Journey to Ixtlan

Debt is Risk

n

It is amazing how this basic truth, that every capitalist knows, about debt is veiled from public consciousness when it suits creditors:

“From the beginning, Merkel and the EU have operated from the position that because Greece took on debt, Greece now needs to pay it back. That position assumed — bizarrely, in hindsight — that debt works only one way: If you lend someone money, that money is repaid.

But that is NOT how free markets work.

Debt is not a guarantee of future payments in full. Rather, it is a risk that creditors take, in hopes of maybe being paid tomorrow.

The key word there is “risk.”

If you’re willing to take the risk, you’ll get a premium — in the form of interest.

But the downside of that risk is that you lose your money. And Greece just called Germany’s bluff.”

source

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