How Running A Country Is Nothing Like Running A Business: #1

Well, Trump hasn’t even been sworn in yet and I’ve got my first entry for this list: http://www.nytimes.com/2017/01/06/us/politics/trump-wall-mexico.html?_r=0 in which he says we’re going to float the debt to build this massive wall (hopefully finding the least environmentally damaging route, eminent domaining the fewest people, and so on). Then we’ll get Mexico to pay for it. Umm … so in business, this was basically the 2008 crash. We find a pool of people who aren’t going to pay, create debt on that not-a-payment, build a heap of stuff, and then act surprised when they fail to pay. Now, in the business world, you turn to the government to bail out your bad debt.

When you do this as a government … I don’t think the IMF is going to pay in Mexico’s stead for debt to which they’ve never consented. And if you look at the IMF requirements in Greece or Ireland, I sincerely hope that isn’t the direction the US goes.

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