Athens is an interesting place to study the world’s financial problems. For instance, if you ask me about the Greek sovereign debt crisis, I am a very pessimistic person. I think it is going to be a very long time before Greece can pay back its debts. I think we could see this situation go on for decades to come and I think Greece has some of the most fragile finances in Europe.
This is where my personal opinion differs from the rest of the world because I think Greece can borrow money. But I also think the European institutions are holding Greece hostage to the will of the Greek people. I think they are doing this to save their ability to borrow money.
Greek people are not a moral force. They are people who are committed to the idea that we can just as easily be able to make our own money.
But I think the Greeks also don’t think very deeply about it because they’re not allowed to do so. They can’t go to the euro-zone central bank because they are not deemed “EU citizens” and thus not allowed to work in the euro-zone.
Greece has a population of about 23 million people, and the central bank of Greece has about 1.2 trillion euros in its vaults. To put that into perspective, that’s about $250 billion. And that’s just the money that’s being held in the vaults. The central bank has $100 trillion in reserves.
This is one reason why I hate the euro-zone central bank. Because they dont need to take out the vaults to pay off their debts because the euro-zone central bank already has their money. The central bank is responsible for the entire balance sheet of the euro-zone. Because that makes them the ones who are responsible for paying back the debts.
The central bank is supposed to be in charge. But they’re supposed to be in charge of the money, not the debt. The debt is the real problem, but the money is the only thing that will be able to solve it. If the central bank wants to control the money, they have to take out the vaults themselves and pay off the debts.
Because the money is the problem, the central bank can do a lot of things to it. They can print it up, they can lend it out, or they can just print it up and borrow it from somewhere else. The bank that does that is called the Federal Reserve. The Federal Reserve creates the money. Instead of creating the money, it transfers it from one bank to another.
So for example, if the Fed were to lend $100 billion, they could create money out of thin air and make it $100 billion. That $100 billion is called the Federal Reserve Note. The Fed doesn’t even need to create money; they just need to make it easier for people to spend it. The Fed could sell the Fed Note to banks, and they could then lend the money to people in the form of mortgages or other types of loans.
The Fed has a great deal of power, and it can create money. The problem is the Fed can only create money when the people in power think it will buy the Fed Note. Which is why the Fed has to make people think it will buy the Fed Note if they want to sell it to the people.