Saturday, May 7, 2011


From Economix:
Very few countries default because they can’t afford to pay their debts, either to their own citizens or to foreigners. Defaults occur when the political process in a country determines that, for whatever reason, the government cannot raise sufficient revenue.

Interesting. It mentions the debt-to-revenue ratio as a critical factor in determining the sustainability (read: servicability) of our debt. Even with the tax-cut crazy republicans dictating the agenda, we're not at a critical level on that statistic.

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