The always on-target Martin Wolf
“Creditors can huff…” is Wolf’s latest Op Ed in the FT (registration required) on the hypocrisy of lenders (Germany and China) decrying the borrowing practices of debtors (Greece, Italy, the US).
Tags: banking, Euro crisis, National debt
Do creditors rule the world? Not really. In the short run, they can threaten to turn off the credit. But their surpluses depend on the willingness and ability of others to run deficits. It would be more sensible to admit that there has been too much borrowing by the profligate because there was too much lending by the supposedly prudent.