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The German financial minister argues that the world economic problem has been caused by high levels of public debt. Krugman argues that only one country got into trouble in the Euro Zone because of public debt. Ireland, Spain and Portugal had low levels of public debt prior to the recession that was created by high levels of private debt and predatory behavior in the banking system.
It seems as if some of our problems have to do with morality. Those who borrow in excess should be punished. It is immoral to bail out countries having difficulty using the private market to borrow money. They must have created this problem for themselves. In fact, the private bankers were responsible for the recession that caused the public debt problems.