The latter two are difficult to liquidate.

To ward off an offensive by German (and other) monetary hawks, who maintain that the ECB has opened the door to debt monetization, the Bank is bound to err on the side of orthodoxy in the coming months.

Such a debt conversion program would offer five benefits. For starters, unlike the ECB s current quantitative easing, it would involve no debt monetization.

He also helped to build several experimental liquid air plants in Europe.

A government cannot liquidate its deficit if the source of its revenues, the national income, is diminishing.

If a large proportion of a country s assets cannot be liquidated easily, or would be greatly depreciated by a large scale sell off, the fact that assets exceed liabilities would not rule out the possibility of debt default.

The Bahrain National Gas Company operates a gas liquefaction plant that utilizes gas piped directly from Bahrain's oilfields.

The only institution that can crank up the printing press the European Central Bank will never resort to monetization of fiscal deficits.

But gas is expensive to transport, for it depends on costly pipelines or gas liquefaction facilities that cannot be replaced quickly when flows are interrupted.

Andrew Mellon, the United States Treasury Secretary at the time, talked about liquidating workers, farmers, stocks, and real estate in order to purge the rottenness out of the system.

This monetization of the fiscal deficit has put enormous pressure on central bank reserves, mitigated only slightly with the issuance of new Eurobonds over the past 2 years.

Finally, in the face of political opposition to fiscal consolidation, especially in the US, there is a risk that the path of least resistance becomes continued monetization of fiscal deficits.

Another interpretation is that people are saving a great deal, and that all this money is chasing investment assets, bidding up prices.

Debt

Debt and Delusion

Debt and Democracy

The Debt Delusion

Debt relief

The country simply cannot keep on piling debt upon debt.

If they take their fiscal deficits (and a potential monetization of these deficits) seriously and raise taxes, reduce spending, and mop up excess liquidity, they could undermine the already weak recovery.

By offering to lend freely against collateral, they liquify assets and prevent banks from being forced to unload loans or securities at fire sale prices.

Debt Déjà Vu

Europe s Debt Wish

(d) Debt burden

Austerity and Debt Realism

Debt and America s Decline

The Debt Death Trap

The Government Debt Bomb

Haiti External debt

External debt

External debt

But if they maintain large budget deficits and continue to monetize them, at some point after the current deflationary forces become more subdued bond markets will revolt.

In 2008, on the eve of the financial crisis, three quarters of Portuguese debt, half of Spanish and Greek debt, and more than 40 of Italian debt was held by foreigners.

Those who fear excessive public debt are the banks that hold it.

And the evidence confirms that the euro crisis is not really about sovereign debt, but about foreign debt.

What To Do About Debt

Recovery of indebtedness to the Fund

He is deeply in debt now.

Africa u0027s Debt Dilemma

America s First Debt Crisis

Our Deep Debt Future

Greece s Bogus Debt Deal

The American Way of Debt

Argentina s Debt Conundrum

The Debt Growth Controversy