“Nations are not people. Socioeconomic platforms have nothing to do with “adulthood.” And the scrimp-and-save behavior that people think should be rewarded with economic growth is in fact rewarded with horrible stagnation and failure.”
“here admits that the irrelevance proposition that any State “can run budget deficits that help to fuel current account deficits without worry about government or national insolvency” applies indeed only to the US: “precisely because the rest of the world wants Dollars. But surely that cannot be true of any other nation. Today, the US Dollar is the international reserve currency—making the US special. … the two main reasons why the US can run persistent current account deficits are:” Read more to find out!
“So in the case of Japan, while the government is a huge debtor, the nation as a whole is a creditor, whereas in the case of Australia, it is the opposite. So the rating agencies get it wrong or opposite!” Amen!