All posts in " Government Debt "
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Who Earns the Money from Government Debt?

By admin / October 21, 2019

QUESTION: Would you please explain exactly what government debt is and who receives the interest payment that governments make on borrowings? I thought that Governments borrowed from their respective central banks and paid the central bank interest on the debt. I never understood why a government would have to pay any interest. My brother tells […]

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Debt & the Point of No Return

By admin / April 2, 2019

QUESTION: Mr. Armstrong; First I want to thank you for coming to Europe this year. It has been some time since your Berlin Conference. My question is simple. How can the ECB tell countries to reduce their debt when as you say nobody ever pays off the debt? Is this just fantasy or do they really […]

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Our Flawed Monetary System & Why it is Doomed

By admin / March 26, 2019

QUESTION: You mentioned that Rome had no national debt and no central bank. Exactly how did it function for 1,000 years? JY ANSWER: In addition to not having a national debt or a central bank, Rome had no police force or agency charged with enforcing the law. There were specific crimes against the state that would […]

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New York City Heading for Bankruptcy

By admin / March 22, 2019

There are New York politicians who continually try to force socialism upon society so a few can live off of other people’s money. The problem is that capital can flee, as we have just witnessed with Amazon bailing out of New York City. Then we have AOC calling it a victory for the little people […]

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The Fallacy of MMT

By admin / March 12, 2019

QUESTION: These economists who propose this MMT claim that since the U.S. borrows in its own currency, it can print dollars to cover its obligations, and can’t go broke. The theory has won converts among freshman Democrats like Alexandria Ocasio-Cortez as a way to finance such social policies as the Green New Deal and Medicare […]

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New Monetary Theory is Like Sleepwalking

By admin / February 6, 2019

QUESTION: Bernie Sanders was basing his whole economic proposal to just keep spending and make everything free. They seem to be teaching this in school now. This macroeconomic theory whereby a country’s spending is only constrained not by revenue in taxes but by inflation when it creates a sovereign currency. It seems too good to […]

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ECB Worried Who Will Buy Government Debt if they Stop?

By admin / October 18, 2017

  According to RELIABLE sources behind the curtain, the crisis in Spain led to a significant amount of selling Spanish debt to the European Central Bank (ECB) which has meanwhile swelled to 2.3 trillion Euro. There are problems now emerging in Italy and the appetite for government debt at low rates is not as strong […]

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Where do US Multi-Nationals Hold Offshore Cash These Days?

By admin / July 13, 2016

What are US multi-nationals doing with the $2 trillion they keep offshore? Looking at the Securities & Exchange Commission (SEC) disclosures shows that Apple, Microsoft, Google, and Cisco Systems hold about 10% of their offshore cash in US government debt, which earns these companies substantial sums in interest. So they are earning interest in dollars while parking money […]

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Central Banks Made Govt Debt the Riskiest Debt of All Time

By admin / June 21, 2016

The central banks have risked it all and lost. They have reached the point of no return. The Fed decided not to raise rates, which are desperately needed to prevent a collapse in pensions and insurance companies, and merely froze like a deer in headlights. The superficial analysts who think lower rates are good for […]