Not much else to say. In every way imaginable it is amusingly idiotic. Reaching into the depths of the abyss for a rationale, for their existence. Since they make up currency, why not make up tenuous assertions.

Could Hamilton have succeeded in a long-range effort under the Articles of Confederation[?]

Nope. One of the biggest problems with the Articles of Confederation was the inability to enforce the revenue subscriptions levied against the individual States. That is the main reason the Founders retained the right to enforce taxation to the central government, rather than leaving that enforcement in the hands of the States.

The struggles of the fledgling Republic to shake off it’s monarchial roots forever continued long after the signing of the Declaration.

Hamilton and his followers fought sometimes bitterly to enhance the power of the Executive, a struggle which was met with veracity from Jefferson and other Republicans.

The parallels with today’s political discussions in Washington are many.

It may be mentioned somewhere in all the talk about this, but one thing I don’t see is the most important caveat to establishing a “sinking fund” and that is that somewhere along the line you need to have A SURPLUS!

All the talk about a “sinking fund” and about “promises must be kept” isn’t going to solve anything without doing something that will create A SURPLUS!

See that’s what the US government did via Alexander Hamilton efforts. The government paid off the “sinking fund” by running a surplus of revenue.

If you ask me, I’d say this EU idea of pooling the debt and creating a “sinking fund” is to get the bad debt off the certain (read: most and likely all but one) individual states’ books, so they can start afresh in running deficits again.

Dusty on February 19, 2013 at 10:58 AM

You couldn’t be more wrong about what a sinking fund is or it’s use. The definition is as follows and has nothing to do with surplusses.

The governments general revenue is separate from “sinking funds” which IS used to retire debt repurchased in the public markets.

German reluctance is the same reaction Hamilton got from the states, who recognized that once the Federal Government assumed their debts, the states’ powers would be reduced. The wealthy states knew a subsidy when they saw one.

All the talk about a “sinking fund” and about “promises must be kept” isn’t going to solve anything without doing something that will create A SURPLUS!

See that’s what the US government did via Alexander Hamilton efforts. The government paid off the “sinking fund” by running a surplus of revenue.

If you ask me, I’d say this EU idea of pooling the debt and creating a “sinking fund” is to get the bad debt off the certain (read: most and likely all but one) individual states’ books, so they can start afresh in running deficits again.

He was repeatedly interested in women to whom he wasn’t married.

Somewhere Bill Clinton is smiling.

We don’t need a central bank if the laws are designed to prevent rapacious behavior… Indeed, the closest thing we have to a central bank — the Federal Reserve — acts as a printing press for the Government, and not on behalf of the People.

We had a robust economy until the leeches figured out how to trash it. Interesting that the leeches are liberals and they are still walking around with our cash in their pockets.

… collapsing under the weight of decades of deficit spending by its member states. I’m not sure that they’re terribly interested in losing what little control they have left without being able to enforce policies on other states regarding spending and taxation. That sounds a lot like the problems facing the US at the beginning of our independence, but without the cultural, linguistic, and political unity of the early colonies

…meanwhile…looking at the direction the U S of A is going….

What could go wrong?

Under the plan, member states would collect portions of their liabilities in a common pot and jointly repay the debt.

This is a scam.

Do they even mention restriction on the right to borrow more money?

It sounds like a formalized blank check from Germany to the out of control spenders.