tag:blogger.com,1999:blog-2249851329008146395.post4559459958581616678..comments2023-10-30T09:11:12.922-07:00Comments on Clouded Outlook: Bank of England extends its dollar credit linesAlice Cookhttp://www.blogger.com/profile/05753570123987780947noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-2249851329008146395.post-21708593090146449022009-06-25T11:52:41.489-07:002009-06-25T11:52:41.489-07:00A timely preparation for the next round of the cri...A timely preparation for the next round of the crisis.Roynoreply@blogger.comtag:blogger.com,1999:blog-2249851329008146395.post-24584430267539591192009-06-25T13:03:55.529-07:002009-06-25T13:03:55.529-07:00"reciprocal currency arrangements (swap lines..."reciprocal currency arrangements (swap lines)"<br><br>Now it seems to me that this is something that could cause hyper-inflation. <br><br>It's what 'did it' for pre-war Germany, and could do the same for us. Germany was obliged to service reparations after the first world war.<br><br>Taking on obligations in a currency other than your own seems to me in the current climate to be reckless.<br><br>Now if your currency collapses your foreign currency obligations rocket!<br><br>Your debt rockets in the foreign currencyAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-2249851329008146395.post-83498953354107119972009-06-26T01:53:14.693-07:002009-06-26T01:53:14.693-07:00Your debt rockets in the foreign currencyBut this ...<i>Your debt rockets in the foreign currency</i><br><br>But this is not a problem since you intended to default all along and stick it to the lenders. Like they always do in Latin America.<br><br>It may be bad form but what can they do?fajensennoreply@blogger.com