Reply To: Bond vigilantees and political power


Ok then I have indeed understood it. This means that if any of my International Studies teachers were honest they would start any discussion of the power of the financial markets by talking about how goverments have empowered these markets by relying on them.

Another related question is that of economic models. In our class we talked about an Asian model(old school mercantilism just with US bonds instead of gold) and a German model(presumably industrial) as well as the Anglo model(heavy emphasis on financial markets. In the case of Asia I know their economic system is due to government policy. However with regards to Germany vs America/Britain is there really any difference and if so what is the cause of it?