Source: The Economist
Subject: Buy now pay later
The IMF warns America about its free-spending ways
PUBLIC finance can seem a dry, abstract subject until the point when it becomes all too real. Portugal and Greece managed for years with budget deficits, high public debt and low growth (Ireland, with the failure of its outsize banking sector, is a rather different case).
Now they have been forced into painful restructuring by bond markets. On the other side of the Atlantic, America faces its most serious budget crisis for decades. On April 13th President Barack Obama is set to present yet another plan to reduce the country’s mammoth deficit. America’s economy is so large, and foreign appetite for greenbacks so voracious, that it seems inconceivable that it could suffer a fate similar to that of Portugal or Greece.
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