tag:blogger.com,1999:blog-913439.post600732975449425869..comments2024-02-26T11:30:05.072-08:00Comments on winterspeak.com: Is Greece like the US, or like a US State?winterspeakhttp://www.blogger.com/profile/13611241702356475764noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-913439.post-90125079481016053392010-05-25T21:33:09.764-07:002010-05-25T21:33:09.764-07:00Good points.
Warren made the point somewhere tha...Good points. <br /><br />Warren made the point somewhere that the difference b/n the US Tsy and the EZ nations is that the US govt is the entity telling the Fed what to do (via legislation), so ultimately whether US govt's checks get cleared is up to the US govt. The EZ national govt's are not in this position. <br /><br />EZ is like having 50 state level Fed banks at which state govt's have accounts (actually, the analogy could work even if you give them accounts at the Fed as currently constructed). Operationally, the states would spend/tax by changing reserve accounts. But those state govt's don't write the laws for the Fed and it's therefore not up to them whether they're checks are cleared if they have a negative balance.<br /><br />Scott FullwilerSTFhttps://www.blogger.com/profile/16261666934714196464noreply@blogger.com