May 14, 2010Facing the Facts: We Are Out of MoneyMatt Welch, Reason
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 AP Photo American conservatives, particularly the fiscal variety, tend tohold up the European Union as a model of irresponsible,big-spending economic policy. But consider this: According to E.U.rules, member countries cannot maintain budget deficits above 3percent of gross domestic product; nor can their total debt riseabove 60 percent of GDP. As Veronique de Rugy points out in thisissue, the U.S. budget deficit in 2009 was three times the E.U.'slimit, and total debt will zoom past the 60 percent thresholdsometime this year. Washington makes Paris look frugal. In March the federal government created the most expensive newentitlement in four decades, even as the bond rating companyMoody's Investors Service warned that debt levels could soonprecipitate a downgrade in U.S. Treasury bonds.... Related Topics: budget, economy RECOMMENDED ARTICLES
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