Category: Global Debt Crisis 2012
The analysis published under this category are as follows.Sunday, January 01, 2012
Sovereign Debt Collateral Damage, What to Expect 2012 and How to Prepare / Stock-Markets / Global Debt Crisis 2012
Which path will we take? If we could only grow our way out of our sovereign debt problems. But growing debt creates even more problems if not dealt with, making it even more difficult to deal with; yet getting the debt and deficit under control brings its own form of pain. As I keep pointing out, there are no easy choices left. Some countries must choose between difficult and very bad, and others are faced with either disaster or calamity. Greece simply gets to choose what it wants to be the cause of a depression. Long and slow or fast and deep? Choose wisely.
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Sunday, December 18, 2011
Global Economic Crisis: The U.S. An Insolvent and Ungovernable Country / Economics / Global Debt Crisis 2012
As announced in previous GEABs, in this issue our team presents its anticipations on the changes in the United States for the period 2012-2016. This country, the epicentre of the global systemic crisis and pillar of the international system since 1945, will go through a particularly tragic in its history during these five years.
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Thursday, December 15, 2011
Pathogenesis Of Central Bank Ruin, Next Ground Zero Is Italy / Stock-Markets / Global Debt Crisis 2012
Central banks are the current sovereign debt market. It is a vacated market. They are the majority bidders via debt monetization. The monetary inflation has become the New Normal and a travesty. In perverse fashion, the financial markets celebrate the monetized purchases, even calling for higher volume. In the process, bond and stock market integrity has been destroyed. Foreign creditors depart the USTreasury Bond market. Large European banks depart the Southern Europe sovereign debt market. Central banks step in to avert panic as the underlying structure to the global monetary system crumbles. When government bond yields rose quickly in Europe, it was not from abandonment by their central bank. The big Euro banks sell boatloads of bonds while the EuroCB buys only truckloads. The bond market integrity has been deteriorating very quickly. The dependence upon the debt monetization process is vividly clear. It is hyper monetary inflation to fill the void, thus providing the dominant bid. Ironically, the dullard stock market mavens celebrate the arrival of the central bank purchases without truly comprehending the destroyed integrity of the bond market. IQ levels are falling along with stock index levels.
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Wednesday, December 07, 2011
Eurozone Debt Downgrade Shock Waves Could Slam Into US Economy / Economics / Global Debt Crisis 2012
Standard & Poor's missed the point when they "only" put 15 Eurozone nations on credit watch for possible near term downgrades. In this highly interconnected world - most of Europe can't be put on credit watch without putting much of the world on credit watch, with the United States being particularly vulnerable to global "contagion" risks.
Twelve possible implications for the United States are concisely explored herein. These "shock waves" include everything from the value of the dollar, to unemployment, gas prices, stock prices, derivatives, US bank stability, inflation, retirement investing, Federal Reserve reactions, the US deficit and credit rating, the potential criminal prosecution of S&P, and more.
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Monday, November 28, 2011
The War Between Creditors and Debtors / Stock-Markets / Global Debt Crisis 2012
The news headlines have been fixated on the debt drama unfolding in Europe. It's important that we give some thought to this since it paves the groundwork for the upcoming 120-year cycle bottom in 2014 and will increasingly play a bigger role in the financial market in 2012 and beyond.
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