Shane: > China, which effectively has no foreign debt at present, is openly > preparing for its eventual debt to be denominated in renminbi.
Are they not smart? I had been suggesting that Greece should get out of euro and convert all of its debt, public and private, to its new domestic currency for that reason. However, borrowing domestic currency from the "foreigners" can be problematic if you cannot borrow a lot. As a saying goes, if I owe you $1,000, it is my problem. If I owe you $1,000,000,000, it is your problem. If you borrow a little and if they sell your debt at fire sale prices, they can screw your interest rates. If you borrow a lot, you make it difficult for them to dump your stuff. Best, Sabri _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
