When paper IOU substitute real cash

I am just reading the Daily Mail, filtering through the rhetoric concerning Spain and its economic woes. According to official sources, whole autonomous regions of Spain are on the brink of bankcrupcy. The lending rates of debt swaps and the issue of government bonds has risen to 7.5%. It is unsustainable by any government. So I can just imagine the look of the Bank of Spain main vaults. Empty of cash, and with folders full of bond issues and IOUs. Many are calling for the EU to resolves its debt problem. Italy is almost where Spain is now. 1 trillion … Continue reading When paper IOU substitute real cash