Putting the brake on public debt has been all the rage for a while, and there are now laws in European countries mandating no new debts some five or six years from now.
The one question we have not seen discussed in the German mainstream media is this: Where will the money go that would otherwise have been invested in new government bonds?
Its not that German bonds issued in the aftermath of the Great Fuckup have offered attractive interest rates, to the contrary.
But the country still offered "investors" a place to put their money.
So, once that avenue of revenue is closed down, where will the 20 or so billion Euros (Germany alone) a year go?
The institutional investors going into government bonds are not known for stashing money in a mattress.
Who will be the target of the sloshing global flood of cash? The famous Brics allegedly are on the way to "a brac", pardon my French. The Chinese are sitting on mountains of U.S. money.
Will a single hedge fund buy up all of Greece?
Will the money be used to buy up firms and natural resources?
Will the better off European countries run a surplus and give back to their people?
It is going to be interesting to watch....
No comments:
Post a Comment