| Re: I'''m just trying to B able to follow. |
Nov. 20th, 2010|11:40 pm |
It seems that way to me. Most debt is created out of nothing by central banks, and for that matter, most mortgage debt is also created out of nothing by private banks.
Regarding this debt, I think there are two very important questions:
1) Why was the previous debt taken on - the pre-crisis debt, I mean. From the brief research I have done on the Bank of Latvia's site, some of it (and this is going back to '93) went to private financial institutions.
2) Where exactly is the IMF/EC loan going? It seems comparatively little is going to cover the budget deficit. You can see already that most of it has gone to servicing already existing debt repayments.
Why would they do it?
An easy source of income, and as the state won't be able to pay back the full amount of debt, we will have further loans with the same kind of structural adjustment packages and loss of sovereignty. In other words - control. |
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