With Max Keiser on the history of debt from the Bronze Age onwards. Max poses the question, has a historical precedent been set with the bailing out of creditors, not debtors in 2008?
US President Barack Obama has given an extraordinary ultimatum to the Republican-controlled Congress, arguing that they must not block the nuclear accord with Iran. It’s either “deal or war,” he says.
[T]hreatening to default should not be a partisan issue. In view of all the hazards it entails, one wonders why any responsible person would even flirt with the idea. — Alan S. Blinder, Princeton professor of economics, former vice chairman of the Federal Reserve
A game of Russian roulette is being played with the national debt ceiling. Fire the wrong chamber of the gun, and the result could be the second Great Depression.
By Mike Whitney
Information Clearing House
October 29, 2009
Interview with Menzie Chinn
1-Mike Whitney: What is the present composition of reserve holdings in central banks–and has there been a substantial falloff in US dollar reserves in recent years? (Are central banks ditching the dollar?)
Prof. Menzie Chinn: I’ve found it puzzling that there’s all this talk about the prospects for the dollar, in the wake of the G-20 meetings, and more recently World Bank President Zoellick’s comments about the primacy of the dollar as a reserve currency. My puzzlement arises from the fact that many of the concerns now being voiced have been voiced before.