Friday, August 2, 2019

STUB Credit as a strategic weapon.

In 1939 Nazi Germany was months away from a massive currency and external debt crisis. Paul Kennedy remarks that credit was the nr. 1 factor in the British victory against Napoleon and of the WW2 allies against Hitler, and trumps any strictly military, logistics, industrial consideration. High government debt in peacetime is a strategic weakness. Some idiots in Italy propose to seek credit from China or Russia to lower the interest rate premium the country pays over the German federal government.

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