“A warrior is only a man. A humble man. He cannot change the designs of his death, But his impeccable spirit, which has stored power after stupendous hardships, can certainly hold his death for a moment, a moment long enough to let him rejoice for the last time in recalling his power. We may say that that is a gesture which death has with those who have an impeccable spirit.”
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

This entry was posted in Business, Greece, Intake, Money, outside and tagged . You are welcome to add your comment

Leave a Reply