,!RE'S NO NE$ = ALL ?IS ECONOMIC SADOMASO*ISM 

,PEOPLE 3 

,AU?OR 3 ,DAVID ,GRAEB] 

,TEXT 3 

,! 9TELLECTUAL JU/IFICATION = AU/]ITY LIES 9 RU9S4 ,IT TURNS \T ?AT ,H>V>D ECONOMI/S ,C>M5 ,RE9H>T & ,K5 ,ROG(F1 :O ORIG9ALLY FRAM$ ! >GUM5T ?AT TOO HI< A 0DEBT-TO-,G,D,P RATIO0 WILL ALWAYS1 NECESS>ILY1 LEAD TO ECONOMIC CONTRACTION - & :O HAD AGGRESSIVELY PROMOT$ IT DUR+ ,ROG(F'S T5URE AS *IEF ECONOMI/ = ! ,I,M,F -1 HAD BAS$ !IR 5TIRE >GUM5T ON A SPREAD%EET ]ROR4 ,! PREMISE BEH9D ! CUTS TURNS \T TO BE FAULTY4 ,!RE IS N[ NO DEF9ITE PRO( ?AT HI< LEVELS ( DEBT NECESS>ILY LEAD TO RECESSION4 

,WILL WE1 !N1 SEE A REV]SAL ( POLICY8 ,A SEA ( MEA CULPAS FROM POLITICIANS :O HAVE SP5T ! LA/ FEW YE>S TELL+ DISABL$ P5SION]S TO GIVE UP !IR BUS PASSES & POOR /UD5TS TO =GO COLLEGE1 ALL ON ! BASIS ( A MI/AKE8 ,IT SEEMS UNLIKELY4 ,AFT] ALL1 AS ,I & MANY O!RS HAVE LONG >GU$1 AU/]ITY WAS NEV] REALLY AN ECONOMIC POLICY3 ULTIMATELY1 IT WAS ALWAYS AB\T MORALITY4 ,WE >E TALK+ AB\T A POLITICS ( CRIME & PUNI%M5T1 S9 & ATONEM5T4 ,TRUE1 IT'S NEV] BE5 P>TICUL>LY CLE> EXACTLY :AT ! ORIG9AL S9 WAS3 SOME COMB9ATION1 P]HAPS1 ( TAX AVOIDANCE1 LAZ9ESS1 B5EFIT FRAUD & ! ELECTION ( IRRESPONSIBLE LEAD]S4 ,BUT 9 A L>G] S5SE1 ! MESSAGE WAS ?AT WE W]E GUILTY ( HAV+ DREAM$ ( SOCIAL SECURITY1 HUMANE WORK+ CONDITIONS1 P5SIONS1 SOCIAL & ECONOMIC DEMOCRACY4 

,! MORALITY ( DEBT HAS PROV$ SPECTACUL>LY GOOD POLITICS4 ,IT APPE>S TO WORK JU/ AS WELL :ATEV] =M IT TAKES3 FISCAL SADISM 7,DUT* & ,G]MAN VOT]S REALLY DO BELIEVE ?AT ,GREEK1 ,SPANI% & ,IRI% CITIZ5S >E ALL1 COLLECTIVELY1 AS !Y PUT IT1 0DEBT S9N]S01 & V[ SUPPORT = POLITICIANS WILL+ TO PUNI% !M7 OR FISCAL MASO*ISM 7MIDDLE-CLASS ,BRITONS REALLY WILL DUTIFULLY VOTE = C&IDATES :O TELL !M ?AT GOV]NM5T HAS BE5 ON A B+E1 ?AT !Y MU/ TI<T5 !IR BELTS1 IT'LL BE H>D1 BUT IT'S SOME?+ WE CAN ALL DO = ! SAKE ( \R GR&*ILDR574 ,POLITICIANS LOCATE ECONOMIC !ORIES ?AT PROVIDE FLA%Y EQUATIONS TO JU/IFY ! POLITICS2 !IR AU?ORS1 LIKE ,ROG(F1 >E CELEBRAT$ AS ORACLES2 NO ONE BO!RS TO *ECK IF ! NUMB]S ACTUALLY ADD UP4 

,IF EV] PRO( WAS REQUIR$ ?AT ! !ORY IS SELECT$ TO SUIT ! POLITICS1 ONE NE$ ONLY CONSID] ! REACTION POLITICIANS HAVE TO ECONOMI/S :O D>E SUGGE/ ?IS MORALI/IC FRAMEWORK IS UNNECESS>Y2 OR ?AT !RE MI<T BE SOLUTIONS ?AT DON'T 9VOLVE WIDESPREAD HUMAN SUFF]+4 

,EV5 BE=E WE KNEW ,RE9H>T & ,ROG(F'S /UDY WAS SIMPLY WRONG1 MANY HAD PO9T$ \T !IR HI/ORICAL SURVEY MADE NO DI/9CTION BETWE5 ! EFFECTS ( DEBT ON C\NTRIES SU* AS ! ,U,S OR ,JAPAN - :I* ISSUE !IR [N CURR5CY & !RE=E HAVE !IR DEBT D5OM9AT$ 9 ?AT CURR5CY - & C\NTRIES SU* AS ,IREL&1 ,GREECE1 ?AT DO NOT4 ,BUT ! REAL SOLUTION TO ! EUROBOND CRISIS1 SOME HAVE >GU$1 LIES 9 PRECISELY ?IS DI/9CTION4 

,:Y IS ,JAPAN NOT 9 ! SAME SITUATION AS ,SPA9 OR ,ITALY8 ,IT HAS ONE ( ! HI<E/ PUBLIC DEBT-TO-,G,D,P RATIOS 9 ! WORLD 7TWICE ?AT ( ,IREL&71 & IS REGUL>LY FEATUR$ 9 MAGAZ9ES LIKE ! ,ECONOMI/ AS A PRIMA FACIE EXAMPLE ( AN ECONOMIC BASKET CASE1 OR AT LEA/1 H[ NOT TO MANAGE A MOD]N 9DU/RIAL ECONOMY4 ,YET !Y HAVE NO PROBLEM RAIS+ MONEY4 ,9 FACT ! RATE ON !IR #a-YE> BONDS IS UND] #a.04 ,:Y8 ,BECAUSE !RE'S NO DANG] ( DEFAULT4 ,EV]YONE KN[S ?AT 9 ! EV5T ( AN EM]G5CY1 ! ,JAPANESE GOV]NM5T C\LD SIMPLY PR9T ! MONEY4 ,& ,JAPANESE MONEY1 9 TURN1 WILL ALWAYS BE GOOD BECAUSE !RE IS A CON/ANT DEM& = IT BY ANYONE :O HAS TO PAY ,JAPANESE TAXES4 

,?IS IS PRECISELY :AT ,IREL&1 OR ,SPA91 OR ANY ( ! O!R TR\BL$ S\!RN EUROZONE C\NTRIES1 CANNOT DO4 ,S9CE ONLY ! ,G]MAN-DOM9AT$ ,EUROPEAN ,C5TRAL ,BANK CAN PR9T EUROS1 9VE/ORS 9 ,IRI% BONDS FE> DEFAULT1 & ! 9T]E/ RATES >E BID UP ACCORD+LY4 ,H5CE ! VICI\S CYCLE ( AU/]ITY4 ,AS A L>G] P]C5TAGE ( GOV]NM5T SP5D+ HAS TO BE R$IRECT$ TO PAY+ RIS+ 9T]E/ RATES1 BUDGETS >E SLA%$1 WORK]S FIR$1 ! ECONOMY %R9KS1 & SO DOES ! TAX BASE1 FUR!R R$UC+ GOV]NM5T REV5UES & FUR!R 9CREAS+ ! DANG] ( DEFAULT4 ,F9ALLY1 POLITICAL REPRES5TATIVES ( ! CR$ITORS >E =C$ TO (F] 0RESCUE PACKAGES01 ANN\NC+ ?AT1 IF ! (F5D+ C\NTRY IS WILL+ TO SUFFICI5TLY *A/ISE ITS SICK & ELD]LY1 & %ATT] ! DREAMS & ASPIRATIONS ( A SUFFICI5T P]C5TAGE ( ITS Y\?1 !Y WILL TAKE MEASURES TO 5SURE ! BONDS WILL NOT DEFAULT4 

,W>R5 ,MOSL] & ,PHILIP ,PILK+TON >E TWO ECONOMI/S :O D>E TO ?9K BEYOND ! %ACKLES ( ,ROG(F-/YLE AU/]ITY ECONOMICS4 ,!Y BELONG TO ! MOD]N MONEY !ORY S*OOL1 :I* />TS BY LOOK+ AT H[ MONEY ACTUALLY WORKS1 RA!R ?AN AT H[ IT %\LD WORK4 ,ON ?IS BASIS1 !Y HAVE MADE A P[]FUL CASE ?AT IF WE JU/ GET BACK TO ?AT BASIC PROBLEM ( MONEY-CREATION1 WE MAY WELL DISCOV] ?AT NONE ( ?IS IS EV] NECESS>Y TO BEG9 )4 ,9 CONJUNCTION ) ! ,LEVY ,9/ITUTE AT ,B>D ,COLLEGE1 !Y PROPOSE AN +5I\S1 YET ELEGANT SOLUTION TO ! EUROBOND CRISIS4 ,:Y NOT SIMPLY ADD A BIT ( LEGAL LANGUAGE TO1 SAY1 ,IRI% BONDS1 DECL>+ ?AT1 9 ! EV5T ( DEFAULT1 ?OSE BONDS C\LD !MSELVES BE US$ TO PAY ,IRI% TAXES8 ,9VE/ORS W\LD BE REASSUR$ ! BONDS W\LD REMA9 0MONEY GOOD0 EV5 9 ! WOR/ ( CRISES - S9CE EV5 IF !Y W]5'T DO+ BUS9ESS 9 ,IREL&1 & DIDN'T HAVE TO PAY ,IRI% TAXES1 IT W\LD BE EASY 5\< TO SELL !M AT A SLI<T DISC\NT TO SOMEONE :O DOES4 ,ONCE POT5TIAL 9VE/ORS UND]/OOD ! NEW >RANGEM5T1 9T]E/ RATES W\LD FALL BACK FROM #d-#e.0 TO A MANAGEABLE #a-#b.01 & ! CYCLE ( AU/]ITY W\LD BE BROK54 

,:Y HAS ?IS PLAN NOT BE5 ADOPT$8 ,:5 IT WAS PROPOS$ 9 ! ,IRI% P>LIAM5T 9 ,MAY #b#a#b1 F9ANCE M9/] ,MI*AEL ,NOONAN REJECT$ ! PLAN ON COMPLETELY >BITR>Y GR\NDS 7HE CLAIM$ IT W\LD MEAN TREAT+ SOME BOND-HOLD]S DIFF]5TLY ?AN O!RS1 & IGNOR$ ?OSE :O QUICKLY PO9T$ \T EXI/+ BONDS C\LD EASILY BE GIV5 ! SAME LEGAL /ATUS1 OR ELSE1 SWAPP$ = TAX-BACK$ BONDS74 ,NO ONE IS QUITE SURE :AT ! REAL REASON WAS1 O!R ?AN P]HAPS AN 9/9CTUAL BUREAUCRATIC FE> ( ! UNKN[N4 

,IT'S NOT EV5 CLE> ?AT ANYONE W\LD EV5 BE HURT BY SU* A PLAN4 ,9VE/ORS W\LD BE HAPPY4 ,CITIZ5S W\LD SEE QUICK RELIEF FROM CUTS4 ,!RE'D BE NO NE$ = FUR!R BAIL\TS4 ,IT MI<T NOT WORK AS WELL 9 C\NTRIES SU* AS ,GREECE1 :]E TAX COLLECTION IS1 LET US SAY1 LESS RELIABLE1 & IT MI<T NOT 5TIRELY ELIM9ATE ! CRISIS4 ,BUT IT W\LD ALMO/ C]TA9LY HAVE MAJOR SALUT>Y EFFECTS4 ,IF ! POLITICIANS REFUSE TO CONSID] IT - AS !Y SO F> HAVE DONE -1 IT'S H>D TO SEE ANY REASON O!R ?AN %E] 9CR$ULITY AT ! ?\<T ?AT ! GREAT MORAL DRAMA ( MOD]N TIMES MI<T 9 FACT BE NO?+ MORE ?AN ! PRODUCT ( BAD !ORY & FAULTY DATA S]IES4 

,FROM 3 ,!,AN>*I/,LIBR>Y4ORG4 

,*RONOLOGY 3 
,JANU>Y #g1 #bba 3 ,!RE'S NO NE$ = ALL ?IS ECONOMIC SADOMASO*ISM -- ,ADD$4 
,JANU>Y #d1 #bbb 3 ,!RE'S NO NE$ = ALL ?IS ECONOMIC SADOMASO*ISM -- ,UPDAT$4 

 FILE G5]AT$ FROM 3  
HTTP3_/_/REVOLTLIB4COM_/