Greece: Being a “Developed Nation” Doesn’t Matter

I wouldn’t have noticed this story in USA Today about Greece, except that Drudge linked to it with the following headline: “First developed nation to default on international obligations…” I did not find that line in the story. But I did find the following paragraph: After the deadline passed (at 6 pm ET), Greece joined Zimbabwe, Sudan and Somalia in being in arrears to the IMF. Fitch Ratings has downgraded Greece’s government debt further into junk territory. There is no exceptionalism, Read more […]

Government Debt Can Never Be Repaid

Government debt has grown so large that it is now mathematically impossible for the government to pay it back. Sports fans are familiar with the calculations in which your team is “mathematically-eliminated” from any possibility of making the playoffs (something Chicago Cubs fans typically process in early summer, but… maybe it’ll take a little longer in 2015?). So how should one react when it becomes mathematically impossible for your entire nation to repay its debts? [See also, “Stop Read more […]

A Reminder The US Will Never Pay Off Its Debt

From the Rare blog: Your share of the national debt is now $1.1 million Each U.S. taxpayer now has a federal-debt liability of $1.1 million, and rising. Remember that when President Obama boasts that the federal deficit—the shortfall between annual revenues and spending—is declining. Of course, the primary reason for the decline is the sequester, which was his idea but now adamantly opposes. The public tends to focus on the total national debt, which just passed the $17 trillion mark—up Read more […]

Dear China: We Agree; Let’s “De-Americanize” The United States!

The Telegraph headline blared, “World Should De-Americanise…” The looming prospect of a US default on debt prompted China to call for the world to “de-Americanise”, amid warnings of a new global recession. In China, Xinhua, the official government news agency, said that as American politicians continued to flounder over a deal to break the impasse, “it is perhaps a good time for the befuddled world to start considering building a de-Americanised world”. The jibe came as Christine Read more […]