Wednesday, June 12, 2013

False rumor, prejudice, blind spots ; a rumor of the economy 1

 Hyperinflation in Zimbabwe 

< Hyperinflation in Zimbabwe >

In this series, I will introduce some dangerous opinions that we accept everything on faith, and viewpoints that we don’t usually notice.

About “In world history, there had never been any nation was bankrupted for an accumulated debt.”

Many countries ruined in the past, but we didn’t surely hear the story that a nation was bankrupted for an accumulated debt.
However, many countries could not deal with increasing government expenses and meddled with every reckless measure and disappeared from the history finally.




Hyperinflation in Germany 

< Hyperinflation in Germany >

The Roman Empire and the Edo government repeated a recoinage, and inflation became common. Indeed, there is only nothing.
Germany after World War I printed paper money too much and became the hyperinflation.
France of the Middle Ages performed a barratry, a tax increase, an enormous debt in order to over the financial lack.
The King didn’t pay the debt one-sidedly repeatedly.
The merchant who bought a special privilege invited an economic disparity and a rigidification of the economy.
And the government clerk who increased invited a severe raising tax.

These disordered and exhausted the society, and tormented the common people among other things.
It has been a part of the reason for an internal insurrection, a revolution, and being invaded.
In the end, a fate of the country would run out.



Financial crisis of Greece 

< Financial crisis of Greece >

Almost all feudal domains and the Edo government at the Meiji Restoration didn’t pay the enormous debt (military currency), just like the Japanese Government after World War II.
After World War II, each country including an international organization and EU cooperated and came to help a debt of one country.
However, the country must accept the sudden poverty like Greece.

Furthermore, Will neighboring countries and the world help Japan having an enormous debt?

The history teaches us that reckless debt predisposition does not have the future.
There is not childlike economic theory that a nation can get in debt at will by.

Because there is not a pain if a reflationary policy go well, its result is happy, but becomes more miserable if it fail.
With the current economics, it is difficult to control an interest rate, inflation, and currency exchange.
Therefore a reflationary policy is a thing such as a kind of gambling.





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