Debt

strabes's picture
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explaining why sovereign vs. debt money really, really, really matters...hopefully

thought I'd post my latest Renaissance 2.0 video here because it addresses in a new way the sovereign vs. debt money issue that has been the subject of so many heated debates on this site that are almost as polarizing and unproductive as the AGW debates.  by avoiding the math and economic theory and simply looking at big picture reality, I hope it reveals the true nature of debt money and why it must be fixed (at the M0 level...will be explained in a future video). it also provides a new perspective on inflation, JPM Chase, and derivatives...

investorzzo's picture
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Financial winter

ES: Look, I expect a crisis. We've already had two crises. They just didn't quite manifest themselves. We've been so close to the financial system breaking down -- twice. And now we've taken it to a whole new level -- to the level of sovereign risk. My goodness. If people turn their backs on sovereign bonds, where are we going? You won't be able to fund your deficits. Rates will sky-rocket.

investorzzo's picture
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U.S.’s $13 trillion debt poised to overtake GDP

June 4 (Bloomberg) -- President Barack Obama is poised to increase the U.S. debt to a level that exceeds the value of the nation’s annual economic output, a step toward what Bill Gross called a “debt super cycle.

http://www.bloomberg.com/apps/news?pid=email_en&sid=aa0cI64Gx.4E

http://jsmineset.com/wp-content/uploads/2010/06/June0410Bloomberg.jpg

investorzzo's picture
forum

Is Washington Bankrupting America?

According to a recent poll, 74 percent of likely voters are extremely or very concerned about the current level of government spending. And 58 percent think the level of spending is unsustainable.

Is the public right? Is Washington bankrupting America? Some facts from the video:

Spending per household has risen over 40 percent in the last 10 years and is set to do so again in the next 10 pushing debt (and interest on the debt) to unprecedented levels. But that’s just a result of PAST spending…

investorzzo's picture
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The ketchup theory of inflation

The ketchup theory of inflation
May 28th 2010, 9:15 by Buttonwood

SHAKE the ketchup from the bottle/first, a little, then a lottle. We've all struggled to deal with Heinz's best known variety. And the pseudoplastic nature of the sauce helps explain why quantitative easing could, if things go wrong, end up in hyperinflation. As Tim Lee of pi Economics suggests

The central bank keeps "shaking the bottle" (ie monetising debt) but no ketchup (ie inflation) comes out - so it shakes even harder. In the end, the ketchup comes out in an inflationary rush.

piquod12's picture
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Niall Ferguson lecture

Always worth listening to this chap IMO. He paints a very good picture of why the public debt in the anglo-saxon World is every bit as bad as for the PIGS and that the only difference is trust in fiscal policy going forward. Also how frighteningly quickly the bond markets can move once confidence levels change!

http://www.piie.com/events/event_detail.cfm?EventID=152&Media

investorzzo's picture
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The Western world keeps spending its way to disaster

The Swiss-based Bank of International Settlements (BIS), the oldest international financial institution in the world, has functioned as the central bank of central bankers for 80 years. In a working paper written by three senior staff economists (“The future of public debt: prospects and implications”), released in March, BIS warns that Greece isn’t the only Western economy with hazard lights flashing.

silvervarg's picture
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Current problems in European Union countries

I think this is the right place to put this post, as the main problem that some European countries (right now primarilly Greece) goes through is a problem of trust. The lack of trust comes from the lenders doubt that the country will be able to repay their debts, and this does ofcourse come from the large debt in relation to the countrys GDP.

What has happened so far is that a few counties economic status have dropped quite rapidly from very good status to junk status.

Swampmama3's picture
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Is there time to pay off debt, and if not, then what?

Hello again, everybody.  I've been off traipsing through other forums and life in general.  Nice to come back to the comparatively welcoming, rational tone here.

investorzzo's picture
forum

Painful look at the future of public debt

Debt Projections