[blue1]

> Deadly Innocent Fraud #1: The federal government must raise funds through taxation or borrowing in order to spend. In other words, government spending is limited by its ability to tax or borrow.

Unfortunately, in the (deadly?) Eurozone this is indeed how it works.

[RobertoG]

Yes, but most people, including me, didn't realized at the time what was going on.

And most don't realize yet.

[spdionis]

But if they can borrow from the European Central Bank what's the problem?

[blue1]

Statute of the ECB, Article 21.1:

«In accordance with Article 123 of the Treaty on the Functioning of the European Union, overdrafts or any other type of credit facility with the ECB or with the national central banks in favour of Union institutions, bodies, offices or agencies, central governments, regional, local or other public authorities, other bodies governed by public law, or public undertakings of Member States shall be prohibited, as shall the purchase directly from them by the ECB or national central banks of debt instruments.»