[ExI] antiscience from both sides

[Rafal Smigrodzki]

On Tue, May 5, 2020 at 4:13 PM SR Ballard via extropy-chat <
extropy-chat at lists.extropy.org> wrote:

>
> Technically, no one ever has to hold the bag because you can:
>
> (1) Default
> (2) New country/government
> (3) Inflation (“Money printer goes brrrrr”)
>

### Garrett Jones in "10% Less Democracy" takes apart this reasoning. Worth
reading.

Basically, governments are in a long-term game. There is always the next
fiscal year coming, and most governments are pretty sure they will need to
borrow in that year too. If they default on debts to independent external
creditors, they won't be able to find lenders next year, so they grumble
and moan but keep paying interest and tighten their citizens' collective
belt to keep the money flowing. In this way external creditors act as a
disciplining factor to governments and reduce democracy (which is a good
thing!).

Rafal
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