Repudiation not monetization

Jeff Hummel argues that the most likely policy course for the US will not be monetization of the debt burden, but default on the interest payments and perhaps repudiation of part of the principal.

Hummel puts our current situation in historical perspective.  I've long argued for repudiation (ask Dave Prychitko).  But I don't think the logic of politics will accept an explicit repudiation, but instead will lead to an implicity repudiation through monetization.  But I could very well be wrong.

Click here to read the entire article…

Technorati Tags: current situation, Dave Prychitko, Debt Burden, historical perspective, Hummel, Interest Payments, Jeff Hummel, Logic, monetization, policy, repudiation, US

Related posts:

1. Government Accounting
2. Government Accounting
3. Truthful Interest Rates and Federal Reserve Monetary Policy
4. Debt and Repudiation in Mississippi
5. "Within a few years, western governments will have to sharply raise taxes, inflate, partially default, or some combination of all three."

Tags: current situation, Dave Prychitko, Debt Burden, historical perspective, Hummel, Interest Payments, Jeff Hummel, Logic, monetization, policy, repudiation, US

This entry was posted on Tuesday, August 4th, 2009 at 7:11 pm and is filed under Austrian Economics. You can follow any responses to this entry through the RSS 2.0 feed.