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Spain Declares 2-Year Moratorium on Evictions Following Suicides; Policy Will Blow Up Spectacularly

Francis64 Wrote: Nov 12, 2012 6:39 PM
Historically, when governments face such debts, they resort to debasement of the currency to relieve them of the economic burden of the debts. This has the added benefit of not, technically, defaulting. Nonetheless, such inflations wipe out the middle class and damage the upper class. The lower class? Not so much. They don't have a lot of financial assets to lose. However, Greece does not have this option while part of the Euro. But ignore Greece for a moment. Is not inflation, eventually, the only road open to the U.S.? Can we repay these debts without debasing the currency?
David4 Wrote: Nov 23, 2012 4:57 PM
People say: "resort to debasement of the currency to relieve them of the economic burden of the debts."
But if the government's spending continues to exceed their revenues then they must borrow more debt or print more fraud-money. They are on a trip to Zimbabwe, which leads to impoverishment and starvation of the population. Such a thing can end only when the government balances the budget and agrees to use a hard currency.

El Pais (via Google translate) reports Government will give a two-year moratorium to end evictions.

Social pressure, political and, above all, the shock of facts so overwhelming as two suicides in recent weeks, the second on Friday, has led the government and the...

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