America’s Latest Phony Fiscal Crisis
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March 18 (Bloomberg) -- In most countries that experience afiscal crisis, there is no ambiguity about the situation.
The government is unable to sell debt at a reasonableinterest rate. This probably coincides with a broader shift outof domestic assets, as smart investors read the writing on thewall or in the newspapers. The currency collapses and, often,inflation accelerates. The government is forced to slashspending and, cap in hand, asks for help from the world’s leastpopular ambulance service: the International Monetary Fund.