Comments by "Uncle Dave" (@UncaDave) on "World Affairs In Context" channel.

  1. Like any family, if there is lots of debt and reduced income, spending must contract to survive. That is always painful. That’s why no one hardly does that. Devaluing the currency of course will help trade. The success will depend on the people’s willingness to live with this.
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  2. I know very little of state run economics. That being said let me ask a question obvious to the common man. If an individual gets in over his head financially, he files bankruptcy, the debts are reduced or wiped out and anything left restructured based on sale of assets and current income. Fall River, MA went bankrupt in 1930 and the state governed its finances for about ten years. In 1975 NYC was effectively bankrupt and through a series of entities created like the Municipal Assistance Corporation, the state created Emergency Financial Control Board, loans from the teachers union of $150 million, a total restructuring of expenditures, revenues plus 2.3 billion in loans from a federal program called the NYC Seasonal Finance Act of 1975, it took till 1985 to restructure all debt and get the city back on sound footing. So why can’t Argentina, a country, do the same thing with some independent entity as trustee and receiver? They will never pay off what they owe the IMF and trying to do so will obviously really hurt the people causing further unrest and suffering. Remember if I owe my bank several hundred thousand dollars, they got me. If I owe them several hundred million, I got them.
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