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Old October 7 2012, 11:27 PM   #68
horatio83
Commodore
 
Re: Would the Neutral Zone have better without the 20th century charac

You just proved my point. Spain's public debt to GDP ratio was extremely low before the financial crisis. It was basically a fiscal conservative's wet dream. Public debt increased like in any other country because of the bail-outs.
Here you can see Germany's (blue) vs Spain's (red) debt to GDP ratios.

Involuntarily you are partly right, what has happened with the bail-outs and quantitative easing is some kind of socialization of debt and as debtors gain from it it is socialism for the rich ... although I have to add that there were not in principle any other options. Fischer's old paper about debt and deflation as well as Koo's recent work on balance sheet recession has shown that getting rid of public debt is paramount in such recessions.

Anyway, let's not derail this thread anymore and spare you from further embarrassing yourself with your simple-minded libertarian propaganda nonsense that has little to do with real-world economics.
__________________
The illegal we do immediately; the unconstitutional takes a little longer. - former US Secretary of State and unconvicted war criminal Henry Kissinger

Last edited by horatio83; October 7 2012 at 11:42 PM.
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