Today
we should look elsewhere. To the US, for instance as we get the news that Puerto
Rico is also broke. The public debt is around USD 72 billion and the territory’s
government is in no position to honour it. Default is around the corner. But it
looks manageable as debt represents only 70% of nominal GDP. In any case, it
will end up by causing some losses for those who have placed money in public
bonds. That´s what they mean by “manageable”: the State borrows and with time the private
citizens get a serious haircut.
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