With panic everywhere, there are still a few options around that could be used - honest, reasonable and bad ones.
1. Raise capital through emission of hard government or bank bonds. These must be longterm and anchored by solid garanty (gold, land rights etc)
2. Raise taxes. This adds mainly burden to the medium-class and poor tax payers.
3. Print money. Has happened before- a typical weak government response. This leads to double-digit inflation and ends up being a tax in particular for the poor.
4. Caveman's approach. Kill and eat somebody who has got money (groups of people or countries). Unethical and barbarian, it happens more often than one might think. It's an option of despair when the treasury is empty and arsenals are full.
(c) 2008 by Franz L Kessler
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