CHAPTER 7
THE 5 WAYS OUT OF THE DEBT TRAP
We all know what to do, we just don’t know how to get re-elected after we have done it.
—Jean-Claude Juncker, prime minister of Luxembourg and president of the Euro Group
Governments over time have tried hundreds of ways to avoid the pain of the Debt Trap. I think the most creative (and least successful) country at doing everything it could imagine to get out has been Argentina. None of its tricks have worked, and the Argentine government has done nothing but bring further pain and heartache to that country. The five ways out of the Debt Trap are (1) let the economy grow the country out of the trap, (2) default and repudiate the debt, (3) print money to pay for it, (4) raise taxes and/or reduce expenses ...
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