Doug Noland - The Curse of Moneyness

``Fundamental to sound money is that debts do settle. One cannot just accumulate debt and expect confidence in the underlying obligations to hold forever. Yet in today's world debts don't settle -- they just keeps expanding and expanding -- Greece, the U.S., China, Japan, Brazil, EM and "developed." Greece does not have the economic wherewithal to service its huge debt load. The inflationists call for the Germans and the eurozone, more generally, to use the "Moneyness" of their obligations to provide additional assistance to Greece. The Germans and others understand that additional wealth transfers risk impairing EU Credit more generally -- the old "throwing good money after bad." The problem these days is that it's quite difficult to identify good money to throw -- or, better yet, to save for a rainy day. ''