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private debts held by gubmint
debts held by gubmint that go south
are no problem in themselvesno agent will act differently
cause the cost is spread so far and wide
------------------forget barro esque nonsense
its a social write off
and if the system
has resource slack
during the interval
of spendingthe real opportunity cost
might approach zero======================
its hard to figure the loss
when no one perceives the benefit
of being the microscopic
partial creditorthru one's share
of any written off
state debt holdingsmaybe delays in construction elsewhere
because of specific materials and skill
shortages ...
those waits have a temporal knock on effectbut how big otherwise
with slack
there's no general bidding up
of resources elsewhere in the systemthe applicablity
of any and all
private lender private borrower
maxims
that are conditioned into us
are at best useless
and at worst
seriously crippling
wash em awayreplace em
with
pure micro borrower bene calcsobviously
more thinking on this is neededand so little seems to be said so far
idleness is the enemy of welfare and progress
Posted by lady eve at July 26, 2006 10:58 PM