From this morning's The Daily Reckoning
How applicable is this to New Zealand?
Do we have a bloated welfare system?
By what some of our political parties are promising, I wonder.
Italy has the third largest government bond market in the world (behind the US and Japan) at €1.9 trillion. Around €300 billion is due for refinancing in the next year. And if the country does go into recession, it will need to access even more funds to keep its bloated welfare state afloat.
-- For decades, European governments have been run by a bunch of crooks. To retain their hold on power they have promised their people cradle-to-the-grave care. These promises have been paid for by borrowing money...money created by central banks and commercial banks via the 'magic' of fractional reserve banking.
-- But now the game is up. The politicians, being greedy and stupid creatures, got in too deep without understanding the limitations of the debt-based system they were rigging to their benefit. While the focus is squarely on Europe, it's only a matter of time before this reality hits Japan and the US.
-- But now the game is up. The politicians, being greedy and stupid creatures, got in too deep without understanding the limitations of the debt-based system they were rigging to their benefit. While the focus is squarely on Europe, it's only a matter of time before this reality hits Japan and the US.
Do we have a bloated welfare system?
By what some of our political parties are promising, I wonder.
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