Mark Grant: “I Do Not Believe, Any Longer, That The Catastrophe Can Be Avoided”
by Mark Grant
“Countries were additionally asked about the amount of state guarantees. These do not form part of government debt, but are a contingent liability.”
On No Account
I am asked so often about this that I wanted to print out the exact wording from the European Statistics office. In fact, no contingent liabilities are calculated in any government’s debt to GDP ratio in Europe nor are their liabilities (ownership) at the European Union or the European Central Bank. They not only do not include any of these numbers but state guaranteed bonds and bank guaranteed bonds and derivatives contracts also are not part of any debt to GDP ratios in Europe. Right, wrong or indifferent; this is the way Europe does its calculations.
The numbers speak for themselves. The contingent assets are trumpeted from the plains of Heaven. The contingent liabilities are lame mutes living in the “sounds of silence.” The proffered songs could not be more distinct.
“There are two kinds of truths: those of reasoning and those of facts. The truths of reasoning are necessary and their opposite is impossible; the truths of fact are contingent and their opposites are possible.”