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Economics

America’s Latest Phony Fiscal Crisis

March 18 (Bloomberg) -- In most countries that experience a fiscal crisis, there is no ambiguity about the situation.

The government is unable to sell debt at a reasonable interest rate. This probably coincides with a broader shift out of domestic assets, as smart investors read the writing on the wall or in the newspapers. The currency collapses and, often, inflation accelerates. The government is forced to slash spending and, cap in hand, asks for help from the world’s least popular ambulance service: the International Monetary Fund.