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The European public debt problem was in the making long before the 2007-2009 recession, as budget deficits had become endemic. A similar crisis is now developing in America, where the same fundamental causes have been at work. The Public Debt Problem analyzes the situation of public debts in America and reviews official forecasts for the federal government. The author carefully explains the main concepts (budget deficit, public debt, etc.) and analytical tools (discounting, government accounting, Treasury securities, bonds, yields, etc.) necessary to understand the issues.

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The Genie Out of the Bottle Safe State Muddy Terminology Understanding the Public Debt What Is a Trillion Dollars? Basic Concepts of the Federal Government Debt John Maynard Keynes and Democracy in Deficit The Debt of States and Local Governments Adding Up and Taking Stock Lessons from Europe Sovereign Bankruptcy The Debt Problem Predates the Great Recession State Greed The Hidden Welfare State Federal Social Spending Two Welfare States The Look and Feel of the Welfare State Convergence Rational Ignorance Unsustainable Future Uncle Sam´s Solvency in Doubt Official Forecasts of Insolvency The Ghosts in the Closet The Naked Emperor The Emperor´s Praetorians Coercive Taxes Voluntary Taxes in Fiscal Orthodoxy: We Ate It Together Doubts About Fiscal Orthodoxy Who ate the money? Will Americans Pay? The Sovereign´s Bankers ´A True Providence for the State´ Who Are the Real Bankers of the State? The Limits of Honest Borrowing Reducing Expenditures: Mission Impossible? The Miracle of the Loaves and Fishes All Expenditures Are Essential Reagan´s Failure Questioning the State´s Missions Inflating the Debt Away The Cause of Inflation Default by Inflation Could the US Government Pull the Trick? Contagion: When the Emperor Coughs Contagion Fuels Recessions Default Risks Contagion The Least Bad of All Possible Worlds Repudiation or Open Default Stealth Default The Cost of Doing Nothing The Benefits of Open Default Wishes and Reality Opportunities Tough Times Ahead Another Possible World The Fourth Alternative

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"Like many of the world´s social democracies, the United States is hurtling toward a major public-debt crisis. Lemieux clearly and convincingly explains why and then lays out the probable consequences. His book, The Public Debt Problem, contains enough overwhelming evidence and analysis to give all but the most stubborn fiscal-crisis denier second thoughts." - Jeff Hummel, Associate Professor of Economics, San José State University, USA

"Pierre Lemieux´s Public Debt Problem is dazzling. With clarity and insight on every page, he tells you why the government has a debt problem, the size of the problem, and the possible solutions. He also makes a strong case for his own solution: cutting the size of government or, failing that, having the U.S. government default on its debts. Read, learn, and prepare." - David R. Henderson, Research Fellow, Hoover Institution and former Senior Economist, President´s Council of Economic Advisers

"A powerful warning about the dangers of out-of-control government debt." - Michael D. Tanner, Senior Fellow, Cato Institute, USA

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