I’ve noticed a trend in some economic circles that seems to stem from the Positive Money and MMT people – this idea that government “debt” is “equity”. While the taxonomy [ … ]
I’ve been careful in my research on money not to call money a “store of value”. There’s a good reason for this which I will try to explain in this [ … ]
The concern in this environment is that Greece will merely be the first of the dominoes to drop. A mismanaged Greek default or defection could result in a chain reaction from Ireland and Portugal. So, while a Greek default wouldn’t cause an enormous strain on the banking system as a whole it has the potential to result in contagion.