When I first read the news I was taken aback. It said, “Croatia wipes out the debts of thousands of its poorest citizens in ‘fresh start’ scheme“.
I thought to myself, “Could it be? A government or banking system that actually does something somewhat helpful for the poor?”
Government, that beacon of goodness, and the banking system, that place that cares not about profit… <sarcasm> … actually gave a gift to the poor?
Well, first of all, there is no such thing as something being free. Even if it were the banks who were going to “give” this money it would have been taken from the shareholders of the bank. And if it were the government who was going to “give” this money it would have come from extortion (tax) money. And if it were the central bank who were to “give” this money it would come in the form of money printing, which is inflation, which devalues every other Croatian kuna.
Alas, after just a minute of reading, it was actually none of them really giving anything to anybody… but themselves.
This post was published at Dollar Vigilante on February 2nd, 2015.
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