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[quote user="YoHo1975"] <blockquote> <div><img src="/TRCCS/Themes/trc/images/icon-quote.gif" /> Bucyrus:</div> <div></div>   <blockquote> <div><img src="/TRCCS/Themes/trc/images/icon-quote.gif" /> YoHo1975:</div> <div>   <blockquote>  And, in point of fact sovereign nations cannot go broke. It's impossible to go broke when you have the printing presses. It's true you can devalue your currency to the point of self destruction, but that is very much a different issue. </blockquote> </div> </blockquote>   I don’t see the comfort of dismissing the possibility of going broke because it only amounts to self-destruction rather than running out of money.  Generally, I would say that a government that prints enough money to destroy all of the value of money has done something that amounts to “going broke” even though technically they have not run out of money. <div style="clear:both;"></div>   </blockquote>   It's not a matter of comfort. It's that someone who knew what they were talking about would not use the term "going broke."  And in fact, Self destruction, in this case has traditionally meant revolution in some form. The concept of personal finance and in fact even the concepts of the market economy often have almost nothing to do with soverign nation's financing.  Though it makes for good political soundbites to pretend like they do.  <div style="clear:both;"></div> [/quote] Well you are the one who brought up self-destruction in relation to economic collapse, and not in relation to a revolution.   You said this in disagreeing that a country can spend so much that it will go broke, since it can print money: “It's true you can devalue your currency [by printing money] to the point of self destruction, but that is very much a different issue.”  <o:p></o:p> I agree that sovereign finance is more complex than personal finance, but they share the same economic fundamentals.  I do not believe that a country can simply spend money indefinitely beyond the revenue it takes in from the production of wealth as though money were merely an abstraction that government can create for itself as it desires.  Government can indeed spend its way into an economic collapse if it spends too much.  If this were not true, we would all be on easy street with a golden goose satisfying all wants.
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