(The latest column muses on democracy and debt).Given this combination of economic circumstances, Deutsche is surely right to say thatAnyone predicting the endgame is speculating outside the historical datasetPerhaps we will see hyperinflation as central banks suffer the "ketchup" problem; they create so much money that eventually it splurges out of the bottle.
We are doubly sorry.In this section Hony ahoy Summertime blues Democracies and debt The anti-Bob Into another country Virtual spring Paint threshold The geography of poverty Corrections: Mexico's stockmarket and inflation in India Reprints.
The courage she summoned in the face of serious, and at the time frightening, abuses of power put democracy in her debt in a way that few other American publishers, perhaps none, have ever equalled.
These are inflation, debt and democracy.Inflation was conquered by the plan for the real in 1994.
Yar'Adua inherited from Obasanjo a strong political economy that had achieved important successes in paying off the bulk of the country's international debt, extended democracy and the rule of law, restructured the civil service, and made a determined drive against corruption.
In the end the race may be decided by the number of votes won by a feisty third-party candidate, Chris Daggett, who mocks both Republican and Democrat with gusto.Democrats down in the Old DominionMeanwhile, outside a store that sells pumpkins and hunting rifles in Stuart, Virginia, Bob McDonnell is making a smooth stump speech about clean coal, fish-farming, debt and democracy.
But the issue that still fascinates this blogger is the relationship between debt and democracy.When a family or a company borrows money from a bank, the decision-making process is irrelevant to the rights of the parties; no-one can say "Well, the finance director took out that loan, but that's not the responsibility of the rest of the business".
India's story can be told in three parts: demographics, debt and democracy.
But this has postponed the crunch point, rather than eliminated it and allowed stable democracies to accumulate higher debt, relative to their GDP, than many, more volatile countries ever achieved.
Because modern democracies hold so much debt, and must finance it within a system where capital is instantaneously mobile, zipping across the world at the click of a mouse, they are rapidly losing their sovereignty.
They are planning to do so again: "This is the best that could be done," said Senator Lindsey Graham (R-S.C ., who added, "It's not all I would have liked, but it's called AmeR-S.C .emocracy, so on to the debt ceiling".
