Arnold Kling  

Russ Roberts is Wrong

Sympathy for the Nobelist... Should Macroeconometric Models...

He writes,

The U.S. government borrows money easily because we're the tallest pygmy. But if we keep spending money like a drunken sailor, we will get shorter and more responsible nations will soon tower over us.

We are not the tallest pygmy. According to this story, our government's credit standing is already below that of Canada, Germany, France, New Zealand, and Switzerland.

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COMMENTS (3 to date)
geckonomist writes:

the USA borrows easily because the federal reserve buys the debt, (in-)directly.

The day this scam collapses, you'll have to look for the pygmy with a microscope.

spencer writes:

That is the reason the spread between US and German 10 year bonds is now + 27 basis points, almost exactly in the middle of the +/- 100 basis point spread that has prevailed over the last 20 years,

Dave writes:

Ouch, France...

The Economist's Buttonwood writer has been trying to find a system for ranking debt risks, and finds that the US is arguably in a worse position than France, Belgium, Germany, Austria, Denmark, New Zealand, Netherlands, Finland, Australia, Canada, Sweden, Switzerland, and Norway. Japan and Ireland look the worst.

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