May
14th
Fri
14th
Ezra Klein - Galbraith: The danger posed by the deficit ‘is zero’
For bond bulls: private and public financial balance and why it is easy to finance government debt.
I think that it is true for countries running a trade surplus like Japan or Germany and can therefore finance it internally, and not for countries running a current deficit, like US or Greece, that need foreigners to keep buying new debt or rolling over existing debt.
