The Next Recession Will Be About Sovereign Debt
&gt;&gt;&quot;[..] but it has allowed deeply indebted nations like Greece, Japan, and Italy to service their debts.&quot;<p>Anyone that put Japan, Italy and Greece in the same page and fail to point that Japan is using its own currency, and the other two are not, don&#x27;t understand what he is talking about.<p>&gt;&gt;&quot; [..] if the BOJ or the ECB was to simply buy bonds directly from the treasury without removing an equivalent amount from circulation by holding it as reserves it would be massively inflationary. [..]&quot;<p>Why it would be &quot;massively inflationary&quot;? He fail to tell us.<p>&gt;&gt;&quot; As tax revenues fall, debt to GDP ratios will rise. Rating agencies will downgrade nations debt and investors will demand higher interest rates to compensate for the risk. &quot;<p>Why this has not happened to Japan already? They have been done this for years and years.<p>Edit - recommended lecture: &quot;Building bank reserves is not inflationary&quot; (1)<p>1 - <a href="http:&#x2F;&#x2F;bilbo.economicoutlook.net&#x2F;blog&#x2F;?p=6624" rel="nofollow">http:&#x2F;&#x2F;bilbo.economicoutlook.net&#x2F;blog&#x2F;?p=6624</a>