The Economist | Commentary
A government’s credibility is founded on its commitment to honor its debts. As a result of the dramas of the past few weeks, that crucial commodity is eroding in the West. The struggles in Europe to keep Greece in the euro zone and the brinkmanship in America over the debt ceiling have presented investors with an unattractive choice: Should you buy the currency that may default, or the one that could disintegrate? In the early days of the economic crisis, the West’s leaders did a reasonable job of cleaning up a mess that was only partly of their making. Now, the politicians have become the problem. In both America and Europe . . . . . .