Will US Default on its Debt?
I have just received the current issue of Econ Journal Watch, which is a Symposium on the US Sovereign Debt Crisis. Click here to see this issue of EJW. Tyler Cowen, in his introductory remarks, suggests that the US will experience a debt crisis within the next one or two decades. The US federal government is currently borrowing 40 cents of every dollar its spends - is this really sustainable in the long run? I don't think we will see a total default by the US, but a partial one, with the Fed attempting to raise the inflation rate.