The European flaw

The European flaw

July 17, 2025 0 By Michel Santi
The level of American household debt is at its lowest in 50 years.
But how is this possible, you might ask, in an alarmist context where politicians and analysts keep sowing panic about the unsustainability of U.S. deficits?
The equation is simple, and I’ve been emphasizing it for years: public deficits generate private surpluses.
In a sovereign country, public debt is not a problem because Washington will never run out of dollars.
In contrast, Berlin and Paris can indeed run out of euros, as the countries in the eurozone are not sovereign in the sense that they cannot freely control their own currency.
Support my work

Dear readers,

This blog is yours: I maintain it diligently, with both consistency and passion. Thousands of articles and analyses are available to you here, some dating all the way back to 1993!

What were once considered heterodox views on macroeconomics have, over time, become widely accepted and recognized. Regardless, my positions have always been sincere.

As you can imagine — whether you’re discovering this site for the first time or have been reading me for years — the energy and time I dedicate to my research are substantial. This work will remain volunteer-based, and freely accessible to all.

I’ve made this payment platform available, and I encourage you to support my efforts through one-time or recurring donations.

A heartfelt thank you to all those who choose to support my work.

CategoryCentral Banks debt default deficit obsession ECB

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.