Hungary: no Debt-Free Money
A recent story claiming Hungary is now printing its own debt-free money has shocked the Truth community. It is false though. Some nationalist reaction is going in Hungary, but it’s a far cry from genuine monetary reform.
The story originated at the American Free Press. It was linked to at innumerable sites and took Facebook by storm, but unfortunately it is incorrect. Having asked AFP for a reaction, I was told it was an unfortunate editing slip: the story was not passed by the financial editor.
Perhaps I should have reported on this earlier, I did on Facebook a couple of times, but better late than never. Bill Still was more astute and did a solid analysis of the situation about a month ago, see below.
There is some sort of nationalist reaction going on in Hungary. The Government, led by Viktor Orban, has paid off the last outstanding 2,2 billion dollar loan to the IMF and kicked them out of the country. There were no mutual pleasantries when the IMF goons left Budapest. This did not amuse his European ‘partners’, as is also the case with his policy of gaining more influence over monetary policy. ‘Independent’ Central Banks are at the core of modern economics and politics. Surely we don’t want the people to know what Central Banks are up to? Let alone decide on monetary policy? Bankers know best.
Another issue is that Orban has made clear Hungary will not be joining the Euro for the time being. A great relief for Hungarians, but the Eurocrats consider this an uncalled for snub. Considering what happened to the Euro hostile Polish leadership only a short while ago, Orban is certainly showing a lot of courage. Taking an independent line while located between the Russia and the EU is a tricky proposition, requiring both balls and dexterity.
However, for the time being the Hungarian Forint is still produced by the Banks, as an interest-bearing debt to them. Until that changes, nothing really does.