ABSTRACT
This chapter identifies four classes of argument; first, that the debt is a statistical illusion, second, that the Eurodollar Market is neither unique nor temporary, that there is in fact no problem, third, that the debt need not be repaid but can be rescheduled indefinitely, and fourth that all that is needed is a little official supervision and control. The Eurodollar Market is, D. T. Llewellyn writes, 'nothing more than a manifestation of ordinary financial intermediation'. Proposals for a 'World Central Bank' or a 'World Fund' to 'create liquidity' to support failing debtors are being pressed more and more vigorously each day. Governments and bankers are of course well aware that doubts over the stability of the financial system could be the cause of its collapse whether or not those doubts were justified. It is natural therefore, and indeed proper, that official pronouncements should be confident and soothing.
