UK Karting - Notice Board (Chat) : Re: So that's where Gordon is a Moron Brown went.

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Re: So that's where Gordon is a Moron Brown went.
Posted by 'SimonS' on 15 Jul 2015 @ 08:27

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SimonSJoined: December 2004
Total Posts: 4
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They, like us, expect that the money will be found by running a fiat economy.

A fiat economy runs on 'faith', the faith that the country can pay its due service payments, even if the total debt is beyond their current ability to pay.

An example of a fiat transaction at a personal level would be a mortgage during a house price contraction. Initially the mortgage was backed by the value of the house, but if the house prices fall ( A government aiming to build 500,000 new houses might do that!) then the mortgage is no longer covered. Strictly speaking the bank can then foreclose in order to minimise the loss. However, so long as the mortgage payments are being met, then usually the bank leaves the mortgage in place, they have 'faith' that the payments will continue to be met even though the householder may be 'technically' insolvent (ie assets don't cover liabilities ).

Part of the financial crisis was caused simply because people 'lost faith' and governments insisted on a proper valuation of the turd sandwiches bankers were selling each other.

Another example of a fiat transaction is a punt on the horses. There is no intrinsic value in a horse running past a stake in the ground. Lots of them do it in fields every day, but if you can turn it into a 'bet', then you can build a multi-billion industry based on something absolutely valueless and the belief that someone will act reliably and pay up.

So the Greeks will be looking for something that costs them nothing but can be sold for something, like the view.

Message Thread:

So Greece is saved by 'Moonshine' (13 Jul 2015 @ 15:17)

Re: So Greece is saved by 'dynamax' (14 Jul 2015 @ 9:01)

Re: So Greece is saved by 'itpro' (14 Jul 2015 @ 10:33)

Re: So Greece is saved by 'kai' (14 Jul 2015 @ 12:16)

Re: So that's where Gordon is a Moron Brown went. by 'alanrr' (14 Jul 2015 @ 16:54)

Wait. by 'bt3962' (15 Jul 2015 @ 1:24)

Re: So that's where Gordon is a Moron Brown went. by 'SimonS' << You are here!

Re: So that's where Gordon is a Moron Brown went. by 'itpro' (15 Jul 2015 @ 15:55)

Re: So Greece is saved by 'dynamax' (15 Jul 2015 @ 10:04)

Re: So Greece is saved by 'kai' (15 Jul 2015 @ 12:13)

Re: So Greece is saved by 'Moonshine' (15 Jul 2015 @ 12:28)

Re: So Greece is saved by 'SimonS' (17 Jul 2015 @ 9:47)

You took a chance there Simon with Itpro! by 'alanrr' (16 Jul 2015 @ 0:05)

should have gone to specsavers :) by 'PaulMRotax' (16 Jul 2015 @ 7:18)

Re: You took a chance there Simon with Itpro! by 'itpro' (16 Jul 2015 @ 9:31)

Re: You took a chance there Simon with Itpro! by 'PaulMRotax' (16 Jul 2015 @ 10:27)

Re: You took a chance there Simon with Itpro! by 'dynamax' (16 Jul 2015 @ 13:51)

Re: You took a chance there Simon with Itpro! by 'itpro' (16 Jul 2015 @ 15:06)

Re: You took a chance there Simon with Itpro! by 'dynamax' (16 Jul 2015 @ 15:17)

MP's wages by 'MattCortes' (16 Jul 2015 @ 16:12)

Re: MP's wages by 'itpro' (16 Jul 2015 @ 18:14)

Re: You took a chance there Simon with Itpro! by 'itpro' (16 Jul 2015 @ 18:03)

Re: MPs' salaries by 'kai' (17 Jul 2015 @ 10:47)

Re: MPs' salaries by 'itpro' (18 Jul 2015 @ 2:03)

Re: MPs' salaries by 'dynamax' (20 Jul 2015 @ 9:21)

Re: MPs' salaries by 'itpro' (20 Jul 2015 @ 9:55)

Re: So Greece is saved by 'Moonshine' (20 Jul 2015 @ 19:45)

Re: So Greece is saved by 'itpro' (20 Jul 2015 @ 21:34)

Re: So Greece is saved by 'davidmc' (21 Jul 2015 @ 21:25)

Re: So Greece is saved by 'alanrr' (27 Jul 2015 @ 10:56)

Re: So Greece is saved by 'd-i-y71' (27 Jul 2015 @ 12:44)

Re: So Greece is saved by 'PaulMRotax' (28 Jul 2015 @ 17:15)

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