We picked the link to this report up via Twitter from Robin Fransman
Adj-dir. Holland Financial Centre, Groene Inv. Bank. financiering economie, politieke economie, pensioenen, tweet op persoonlijke titel, retweet not endorsement. Amsterdam · hollandfinancialcentre.com
Until today he has not replied to any of our vital questions other than confirming that our money cannot be a store of value. No further justification, just an outright confession of the motive.
IMF Working Paper
According to this IMF working paper http://www.imf.org/external/pubs/ft/wp/2013/wp13266.pdf there are essentially five ways to reduce large debt-to-GDP ratios. Most historical episodes have involved some combination of these.
The Elements of Debt Reduction
1. Economic growth
2. Fiscal adjustment-austerity
3. Explicit (de jure) default or restructuring
4. Inflation surprise
5. A steady dose of financial repression accompanied by a steady dose of inflation.
A genuine fact of the first is impossible in a time of terminal debt. There’s no math which can make the ends of the second meet. The third is hapless, when only solution can save us or sustain real prosperity. The fourth is a worthless use of an inept term. The fifth must be shining up from the bottom of a glass of tequila. Together, they can be found at the bottom of any toilet for a moment — before they’re rushed off to where they belong.