For you should know that Hong Kong has always held a fascination for me, if only because of its breathtaking dynamics. But, much as I would like to dwell on that, I’ve been invited here to discuss the crisis in the euro area. And I gladly do so, for I feel this crisis needs some explaining.
State and local governments more or less finance their current spending and do not have much outstanding debt apart from that backed by capital formation; and federal capital investment is very small. 7  These statements are based on estimates of the Congressional Budget Office, The Budget and Economic Outlook, Fiscal Years 2005 to 2014 (January 2004).