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Fiscalization Watch


Spain and Ireland had low debts and budget surpluses on the eve of the crisis. The US financial crisis represented a collapse of confidence in private debt, not public debt. So Schaeuble is just making stuff up, inventing a crisis that didn't happen rather than dealing with the crisis that did happen.

Unfortunately, he's not alone. The fiscalization of the crisis story -- the insistence, in the teeth of the evidence, that it was about excessive public borrowing -- has become an article of faith on both sides of the Atlantic. And that faith has done and will do untold damage.

mad? define sanity!

'The history of public debt is full of irony. It rarely follows our ideas of order and justice.' Thomas Piketty

by melo (melometa4(at)gmail.com) on Mon Aug 29th, 2011 at 01:47:54 AM EST
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