As a follow-up to our blog post from this morning on expanding U.S. deficits being good for future growth, my former Invesco colleague, Charles DuBois, has shared the following:
There have been over 100 government defaults on public debt in the past couple of centuries. However, for nations with their own free-floating currency and no foreign debt – there have been none. This fact is, of course, overlooked and not mentioned when you hear about the coming ‘fiscal crisis”. As you know, since at least the 1930s, we have been told the crisis (in the U.S.) is “right around the corner”. Ha ha. Chicken Little is alive and well.
Thank you, Chuck, as always!