>>Brad De Long wrote:
>
>>
>>
>>> Touche...
>>
>>> But if you hit the wall, and if there's no IMF to loan you anything,
>>> then what do you do? You have your freedom of action, you just have
>>> no money to pay for your imports...
>>
>
>>You default. Or threaten to do so and pay x cents on the dollar.
>As I said, the big problem is the flow, not the stock: you need money
>to pay for your current imports...
Then default on the stock, but maintain payment on trade credits, or even on new borrowing. It's perfectly possible to make new borrowings senior to old, unless someone is acting to support a creditors' cartel . . . .which makes me think that the case for getting rid of the IMF may be stronger than I thunk.
dd
___________________________________________________________________________
_____
---------------------------------------------------------
This email is confidential to the ordinary user of the
e-mail address to which it was addressed. If you are not
the intended recipient, please notify the sender
immediately on (44) 20 7638 5858 and delete the message
from all locations in your computer. You should not copy
this email or use it for any purpose, or disclose its
contents to any person : to do so may be unlawful.
Email is an informal method of communication and is
subject to possible data corruption, either accidentally
or on purpose. Flemings is unable to exercise control
over the content of information contained in
transmissions made via the Internet. For these reasons
it will normally be inappropriate to rely on information
contained on email without obtaining written confirmation
of it.
----------------------------------------------------------
___________________________________________________________________________ _____
---------------------------------------------------------
This email is confidential to the ordinary user of the
e-mail address to which it was addressed. If you are not
the intended recipient, please notify the sender
immediately on (44) 20 7638 5858 and delete the message
from all locations in your computer. You should not copy
this email or use it for any purpose, or disclose its
contents to any person : to do so may be unlawful.
Email is an informal method of communication and is
subject to possible data corruption, either accidentally
or on purpose. Flemings is unable to exercise control
over the content of information contained in
transmissions made via the Internet. For these reasons
it will normally be inappropriate to rely on information
contained on email without obtaining written confirmation
of it.
----------------------------------------------------------