Absent Quote by George Soros
“By creating the European Central Bank, the member states exposed their own government bonds to the risk of default. Developed countries that issue bonds in their own currency never default, because they can always print money. Their currency may depreciate, but the risk of default is absent.”
About This Quote
He claims that issuing debt in one's own currency eliminates default risk because money can be printed, though inflation may rise.
In simple terms: Sovereign debt in native currency avoids default but may cause inflation.
Key Takeaway
Prefer debt in your own currency.
Themes
currency policy
sovereign debt
inflation
Mood
analytical
cautious
Type
economic
financial insight
When to use this quote
- government budgeting
- central bank decisions
- emerging markets
Key Concepts
monetary sovereignty
risk management
Questions to Reflect On
- Is inflation a fair trade‑off for safety?
- What safeguards can limit money printing?
A Different Perspective
Printing money can devalue currency and hurt savings.
![“I very often used to get backaches due to the fact that I was wrong. Whenever you are wrong you have to fight or [take] flight. When [I] make the decision, the backache goes away.” quote by George Soros](https://sms4smile.com/quotes/img-quotes/d1e/george-soros-1593_backache_i-very-often-used-to-get-backaches-due-t_38205.jpg)
![“We [at Soros Fund Management] use options and more exotic derivatives sparingly. We try to catch new trends early and in later stages we try to catch trend reversals. Therefore, we tend to stabilize rather than destabilize the market. We are not doing this as a public service. It is our style of…” quote by George Soros](https://sms4smile.com/quotes/img-quotes/f33/george-soros-1593_derivatives_we-at-soros-fund-management-use-options_113322.jpg)
