Dont underestimate the military effectiveness of a manyanakrieg.

That's not an inevitable outcome of such a system. Even if it were it's better than the positive money BS.

So your saying giving control of the money system to two groups who have a huge vested interest in increasing the money supply unsustainabley through debt is the killer app?

Whats the only possible response in such a system when above goes wrong? More debt and pressure towards zero level interest rates as anything else just shrinks the money supply further causing more recession.

High interest rates also = less money supply, less liquidity.

Debt bubble pops, need more debt.

The other aspect of the solution is to try and control money supply/debt via reduction in govt spending ergo austerity, but again this all this means is that individuals and the private sector must take on more debt or see the money supply shrink. Also not very ethical and equitable.

Public surplus means private deficit.

If the private deficit does not grow in relation to Sovereign debt shrinking, you get low growth and a plodding world economy, exactly what we see now.

The best you can hope for with such a system is that the State times its debt expansions in perfect inverse to the Private sector.

Politicians say hai there.

All I have heard from you are lazy assertions, X is good, Y is bad, show some work.

I dont see positive money as a perfect solution, but letting banks distribute capital whilst letting an independent panel of technocrats decide how much the money supply will increase seems preferable at this point. Its not that far removed from the current system whereby an independent panel of technocrats try really hard but ultimately unsuccessfully to optimally control the money supply.

I am sure it will create its own problems, but we will escape the inherent contradiction of debt based money. Too much debt leads to recession, need more debt.

Killer Ap at work in the UK circa 2005.

Dear Bank can I have some money for my value adding small to medium sized business?

Bank: No **** off.

Dear Bank can I have some money so I can buy 10 BTL flats on a Nurses salary?

Bank: Duh, of course you can with bells on.

Allocating capital like a Boss.

From Twitter - a quick explanation of how the Greek bridging loan will work.

So Tsiras is a politician in the mold Bill C? That may be good news for the Greeks. My perception was that he was a true believer.

That article lead to my comment.

which markets? I just use betfair which says it not gonna happen this year.

If Germany really wanted to see a Greek collapse and a Grexit then they could have achieved that a lot cheaper than what they are doing now.

Default! Herr Schauble sends you back to do your homework
You scored 71%!
Sorry, but you did not pass the quiz.

Greek Crisis Quiz: http://www.ft.com/cms/s/2/a0553e94-3...#axzz3gGWlxWJH

That was actually very good, I had 42%. Very tough and tricky questions in there.

Not sure many people are fired up to go through the massive great depression that instituting this would cause, basically would be the monetary equivalent to the austerity "solution" laid on Greece the last five years.

42% too.
Herr Schauble sure is hard to please.

I got all the gossip ones right. Yamaha, Paris Match, Aegina etc.

Just heard on the BBC that Greek air traffic controllers have gone on strike during the height of the holidays season because they want to be run independently in line with EU rules and not by the government.

Yeah, keeping out all those damn foreign tourists will sure help the deficit.

When I heard it I was sure it would be anti-EU. Then they said it wasn't and I did a double-take.

http://uk.reuters.com/article/2015/0...10G1V720150805

So the agreed primary surpluses in the new deal will be 0% 0.5% and 1% in '15 '16 and '17, which seems fair.

It's really what a deal should been all along. Heavy on the reforms and light on austerity. Without the conflicts and game theory it might have been possible without the massive crisis in the middle.

I wouldn't blame game theory. That makes it sound like Varoufakis had planned all of this out in advance. The difficulty was much more that Germany made a serious, concerted push to force Greece out of the eurozone.

But then 3.5% from 2018 on, which is obviously not going to happen. See you back here in three years?

I think plenty of countries are running primary surpluses of that order (Italy?) and have debt burdens that require payments of that size, so I wouldnt say obviously not, but yes I think that's one of the things that can be re-negotiated when time comes. Especially if everything else is going well and there is some trust on both sides. It doesnt have to be as drama-filled as it was this time though.

Tourists want to visit greece No one wants to visit detroit or chicago

You really think Germany is going to give Greece that much extra money while already planning for their default later. If they wanted to cut the cord they would have done it now and blame the Greek government for all of it. Merkel is in enough trouble back home as it is for giving Greece more money. Giving Greece money now and then cutting the cord shortly before the German elections is a guaranteed way for Merkel to lose those elections.

Greeks would have to be stupid to take out secured loans to pay off unsecured loans.