Reblogging for future reference:
I’ve been in Lebanon for the past few days, but not because I’m seeking a replacement for the Princess of the Levant.
Instead, I’m here because the Lebanese Institute for Market Studies arranged a briefing in the Parliament on the perilous state of the nation’s finances.
Lebanon is in trouble because policy makers have violated my Golden Rule by allowing spending to grow too fast. As such, even though the overall fiscal burden of government is relatively modest, red ink has climbed to about 150 percent of economic output. That’s higher than Italy today, and higher than Greek debt when that nation’s fiscal crisis occurred.
I’m not going to predict exactly when Lebanon reaches…
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