Are Japanese Banks Bailing Out Europe?- John Carney reposts my article
Posted by WARREN MOSLER on February 28th, 2012
The Center of the Universe
St Croix, United States Virgin Islands
MOSLER'S LAW: There is no financial crisis so deep that a sufficiently large tax cut or spending increase cannot deal with it.-
MMT: Taxes function to regulate aggregate demand, and not to raise revenue per se.
Warren’s Book:
Buy it or read it free online!
"The most important book ever written" -Elizabeth O'ToolRecent Posts
-
The funds to pay taxes and buy government securities come from government spending.
Subscribe To:
Links
Internet Life
February 29th, 2012 at 1:02 am
I just dont see how the BOJ would make such a bold step. While I personally dont believe that Japan will ever default, the Japanese politicians (like thier US counterparts) and BOJ are very concerned about the Japanese debt situation. And the domestic banks hold most of the Japanese govt debt. So for the Japanese govt to push for their banks to bail out European govts (where there is a very real risk of default) just to weaken the yen…. seems a bit of a stretch.
Reply
WARREN MOSLER Reply:
February 29th, 2012 at 9:23 am
Agreed, as stated.
Reply