Fashionable to compare the U.S. fiscal situation with that of Portugal or Greece

March 31st, 2011|by Michael Ashley Schulman, Perspectives, The Big Picture|

It has become fashionable to compare the U.S. fiscal situation with that of Portugal or Greece. Forgotten, though, is that the U.S. has no foreign currency liabilities; it is the only government that can issue claims against itself. As such, there is no sovereign risk on U.S. government debt. In theory, the Federal Reserve can […]