Thursday, September 8, 2016

Okay ...the state swallows the default where do the real loses show up ?

Hmmmmmm !!

Recall the default source going forward is rectified here by assumption

So we can focus on the debt default

For the life of me I only see opportunity costs
Either the loss of  prior possible individual welfare thru non Pareto optimal prior output of consumables
Or loss of  future productive capacity thru un produced productive machinery structures etc