Rath said:
Austerity drive. Cut the fat, ban earmarks and raise taxes. |
Billionaire investors will go on capital flights when taxes are increased. More job losses during economic austerity.
Endless credit lines resulting in massive debts accrued by foreign and national debts. All the debts are accruing high amounts of interest which must be paid back in the future.
More foreign debt results in a higher percentage of the economy being owned by foreign creditors and international bankers/financiers. There are a couple of way out of a huge foreign debt crisis: One way is to deflate the currency by printing more notes. Halve the value of your currency and that results in the foreign debt being halved. The second way is to take up a new currency- the debt is automatically defaulted on but this would screw your chances of securing borrowings from foreign creditors: credit rating would be screwed.
