Bryan Brulotte: America is quietly and softly defaulting on its debt

No serious policymaker in Washington is proposing an explicit default on U.S. debt. That would be reckless and unnecessary. Instead, the United States appears to be pursuing a more subtle strategy: a soft default, reducing the real value of its obligations through currency depreciation, negative real interest rates and accounting choices that quietly transfer costs to creditors and households. This is not a conspiracy theory. It is a well-worn playbook that has been used by heavily indebted states across history. What is notable today is the scale, coordination and global implications. Read More