France has been hit with a debt downgrade. S&P cut France’s long-term sovereign debt rating to AA- from AA. Daniel Lacalle, chief economist at Tressis Hedge Fund, weighs in on how he thinks this will impact France’s policy. He also warned that this should be a wake-up call to other countries. Mr. Lacalle says France should be growing and reducing its debt, but it’s not. He said it seems the United States is slowly headed in the same direction if it continues to rely on massive government spending to stimulate the economy in the long term.
France’s Debt Downgrade Should Be Warning, US Headed in Same Direction: Economist
By Don Ma