The biggest headwind for the United States and many other governments is the issue of mounting public debt, a factor that contributes to a country's competitiveness rating. But the true problem with public debt won't necessarily be at the federal level, Garelli says.
"In the U.S. the states have problems, cities have problems," he says. "You start to go layer by layer and then you discover that something is very disquieting there because when Washington has a problem, they can print money. But when California, for example, has a problem, they can't."
The biggest headwind for the United States and many other governments is the issue of mounting public debt, a factor that contributes to a country's competitiveness rating. But the true problem with public debt won't necessarily be at the federal level, Garelli says.
ReplyDelete"In the U.S. the states have problems, cities have problems," he says. "You start to go layer by layer and then you discover that something is very disquieting there because when Washington has a problem, they can print money. But when California, for example, has a problem, they can't."
"That makes a hell of a difference," he adds.