Category: Global Debt Crisis
The analysis published under this category are as follows.
Saturday, May 29, 2010
Sovereign Debt Defaults Equal Social Unrest Plus Much Higher Gold Prices / Interest-Rates / Global Debt Crisis
By: Arnold_Bock
The magnitude of current private and government debt, coupled with massive unfunded contingent liabilities for promises of future services to their citizens, will prove to be impossible for many nations to fund. Massive inflation in the money supply will become the preferred vehicle to deflect the default monster and will result in vastly devalued currencies and price inflation as a prelude to default. Such action will be a desperate attempt to buy time to stave off the inevitable and will result in social unrest caused by persons whose comfortable lifestyle and elevated standard of living is about to disintegrate before their very eyes.
Saturday, May 29, 2010
The Broken Euro Club Bailout, Calling All Martians / Interest-Rates / Global Debt Crisis
By: Jonathan_Pain
When the due diligence team from the IMF arrived in Athens to determine how much money was needed, they were not surprised by what they found. They had for many years been watching events in Europe and had wondered how long it would take the Germans to find out how the Greeks had not been playing by the rules of the Euro club. In fact the citizens of Mars had been watching the reality show, „Euro club‟ for many years. What concerned them most was that the last time they had seen the Europeans get so angry with each other, many horrible, horrible things had happened.
Saturday, May 29, 2010
Pity the Greeks, Should the U.S. Bail Out European Banks? / Interest-Rates / Global Debt Crisis
By: John_Mauldin
Six Impossible Things
Delta Force
Reduce your Deficits!
Pity the Greeks
Should the US Bail Out European Banks?Alice laughed. "There's no use trying," she said" One can't believe impossible things."
Thursday, May 27, 2010
An American Concept: Crushing Sovereign Debt / Interest-Rates / Global Debt Crisis
By: David_Galland
By David Galland, Managing Director, Casey Research writes:
Commenting on the European crisis – because this has gone well past being one that can be termed “Greek” – the New York Times cited a senior U.S. official on the significant role the U.S., including Obama himself, played in getting Europe’s leadership to agree to a bailout approaching one trillion. One particularly telling quote…Read full article... Read full article...
Wednesday, May 26, 2010
In a Word, the Problem is DEBT / Interest-Rates / Global Debt Crisis
By: Tim_Iacono
Recent developments in the euro zone that increasingly look like they will lead to the restructuring (if not the collapse) of one of the world’s major currencies and the potential for this “contagion” to move first north to the U.K. and then west to the U.S. have many people wondering what’s gone wrong with the global monetary system.
How could advanced Western economies have run into such trouble?
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Wednesday, May 26, 2010
Fed Confirms What Gold, Hard Asset Investors Already Knew / Interest-Rates / Global Debt Crisis
By: Dr_Jeff_Lewis
Exit plan? What exit plan? The Federal Reserve issued a report before Congress in an attempt to clarify its stance during one of the worst recessions since the Great Depression. The Fed, as always, said very little, but did make one thing very clear—the Fed has no idea what it is doing.
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Monday, May 24, 2010
Evolving Financial Crisis: The World Banking System is Insolvent / Stock-Markets / Global Debt Crisis
By: Bob_Chapman
Keeping up with today’s dysfunctional markets is very difficult because they change hour by hour. The problems of Europe have stolen center stage from US problems. The focus is on Europe, but we all should remember trillions of dollars have been injected into the US financial system since mid-2007. All are attempting to maintain the façade that all is well, when in fact all is not well. Underlying assets are worth far less than their stated value.
Saturday, May 22, 2010
Massive Currency and Debt Devaluations Lie Ahead / Currencies / Global Debt Crisis
By: Bryan_Rich
The run-up in the stock market from March 2009 until last month was sharp and rewarding … for some. But there was one problem, it came with disproportional risk. You see, the stock market rose to an extent that it was pricing in perfection … a V-shaped recovery … a return to normal.
That overly optimistic view on the world can make for an ugly ending …
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Saturday, May 22, 2010
European Union's Debt Crisis Stormy Seas on the Atlantic / Economics / Global Debt Crisis
By: John_Browne
The European Union's debt crisis, the threatened collapse of its fledgling 'euro' currency, and the uncertainties created by the UK elections may seem very far removed from the American ship of state, but, in reality, this turbulence threatens to capsize our fragile economy.Read full article... Read full article...
Friday, May 21, 2010
Government Budget Deficit Financing and Inflation / Interest-Rates / Global Debt Crisis
By: MISES
I assume that you know how the banking system developed and how the banks could improve the services rendered by gold, by transferring assets from one individual to another individual in the books of the banks. When you study the development of the history of money you will discover that there were countries in which there were systems in which all the payments were made by transactions in the books of a bank, or of several banks. The individuals acquired an account by paying gold into this bank. There is a limited quantity of gold, so the payments which are made are limited. And it was possible to transfer gold from the account of one man to the account of another.
Friday, May 21, 2010
The Eurozone Stimulus Package and Economic Fundamentals / Economics / Global Debt Crisis
By: Frank_Shostak
On Monday, May 10, eurozone officials presented a stimulus plan involving $1 trillion. The main reason for the package, as stated by officials, is to prevent European economies from falling into an economic black hole on account of the economic crisis in Greece.
Friday, May 21, 2010
Sovereign Debt Crisis, Have We Crossed the Point of No Return? / Economics / Global Debt Crisis
By: Philipp_Bagus
A specter is haunting the world, and especially Europe: the specter of a sovereign insolvency. The acute sovereign-debt crisis is largely the result of government interventions in response to the financial crisis.
As Austrian business-cycle theory explains, the credit expansion of the fractional-reserve-banking system had caused an unsustainable boom. At artificially low interest rates, additional investment projects were undertaken even though there was no corresponding increase in real savings.
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Friday, May 21, 2010
Politicians Battle Against Markets, The Sovereign Policies of Insolvency / Stock-Markets / Global Debt Crisis
By: Ty_Andros
The greatest transfer of wealth from those who hold it in paper to those who don’t is underway; a Crack-up Boom looms.
It’s time to put on your battle gear and man your stations as the “when hope turns to fear” (see 2010 outlook in Tedbits archives) moment has arrived. As the G7 financial systems lurch towards their demise, insanity is on plain display in the capitals of the developed world, with the purchasing power of all G7 currencies (Pounds, Swiss Francs, Euros and Dollars of all stripes) in free fall -- as measured in the only REAL currencies in the world: GOLD and SILVER. &
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Friday, May 21, 2010
Greek Debt Crisis Peoples Heresy / Politics / Global Debt Crisis
By: Submissions
John Pilger writes: As Britain’s political class pretends that its arranged marriage of Tweedledee to Tweedledum is democracy, the inspiration for the rest of us is Greece. It is hardly surprising that Greece is presented not as a beacon but as a “junk country” getting its comeuppance for its “bloated public sector” and “culture of cutting corners” (the Observer). The heresy of Greece is that the uprising of its ordinary people provides an authentic hope unlike that lavished upon the warlord in the White House.
Thursday, May 20, 2010
New Zealand Said No to Economic Death by Debt, Why Can't We? / Economics / Global Debt Crisis
By: LewRockwell
Floy Lilley writes: Anyone reading news feeds on the global financial crisis is painfully aware that the world as we know it is rapidly destabilizing. Bottomless debt is gaping open in unfamiliar terrain like crevasses in Ruth Glacier near the end of June.
Europe debt woes have pummeled the euro and Asian shares. Eurozone taxpayers are now extremely exposed to high credit risk, leading to a panic in the world markets, as foreign holders of Greek and Portuguese debt have seized on emergency intervention by the European Central Bank to scamper out of their positions. The chief executive of Deutsche Bank said it would require “incredible efforts” by Greece for its debt to ever be repaid in full.
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Wednesday, May 19, 2010
The Greek Debt Tragedy a Sneak Preview of What's Coming to Washington / Interest-Rates / Global Debt Crisis
By: Ron_Holland
"The current European debt crisis likely will not end until the euro collapses as a currency and takes the entire European Union with it." ~ Dennis Gartman, hedge fund manager and writer of The Gartman Letter
I was just in Greece, where the stupidity and venality of the political class are in full view.
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Wednesday, May 19, 2010
Global Debt Defaults Ahead as Keynesian's Race to Bankruptcy / Interest-Rates / Global Debt Crisis
By: Gary_North
The euro is falling. It is at the lowest exchange rate to the dollar in four years.
Confidence in the euro is falling because it is becoming clear that the region's commercial bankers have made the same sorts of bad decisions that American commercial bankers made after 2000. They loaned money to debtors in Eastern Europe who will not be able to repay. These loans were collateralized by real estate, which rose. Real estate prices in Eastern Europe are now falling. The bubble has popped.
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Wednesday, May 19, 2010
Debt Default ‘Deferral’ of Greece a Dangerous Precedent – Got Gold? / Interest-Rates / Global Debt Crisis
By: Arnold_Bock
If the implications of the recent Greek tragedy were not so serious it would have been seen more as a Greek comedy (of fiscal errors). In fact, however, to deploy another metaphor, Greece's sovereign debt is seen as the proverbial canary in the coal mine - a microcosm of the relentlessly growing sovereign debt that has taken much of Europe by storm and is threatening to spread to the U.S.
Tuesday, May 18, 2010
Guess Who’s Even MORE Broke Than Greece? / Interest-Rates / Global Debt Crisis
By: Graham_Summers
Sentiment is a strange thing.
Greece’s debt issues have been staring everyone in the face for years. And yet it wasn’t until January 2010 that they suddenly became “relevant” to the investment world.
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Monday, May 17, 2010
Will Euro Sovereign Debt Contagion Cross the Atlantic to the U.S.? / Interest-Rates / Global Debt Crisis
By: Julian_DW_Phillips
Even after the massive rescue package [$750 billion] was delivered, confidence in the € seeped away and it weakened to $1.2320. With U.S. sovereign debt at unacceptable levels too, the debt fear 'contagion' cross the Atlantic? More than that, if bond values continue to drop will the lending banks to the debts issued survive. Can this happen in the States and will their banks be dragged into the crisis?
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