Sovereign Debt

The ascending dominance of the “Currency Contagion” meme will raise the selling price of this asset 197%…..

Whilst politicians of all the major parties during the general election campaign continue to ignore the giant debt elephant in the room as the general public continue to prefer to be deluded into thinking that Britain can skip the debt crisis that faces the country as a consequence of Greecesk levels of annual deficits and … Continue reading

In the event of a full-blown sovereign debt crisis, hard assets will become deeply desirable as one of the few “stores of value” left….

…Sovereign governments through their bailouts, stimulus packages and support, have basically become the credit markets….

By William Patalon III, Executive Editor, Money Morning Is America getting in too deep? According to a new estimate by the Congressional Budget Office (CBO), if the United States continues along its current path, U.S. public debt will reach 90% of the nation’s economic output by 2020. Given that federal debt has already zoomed to … Continue reading

by Mike Larson 03-26-10 I have a lot of respect for Warren Buffett. As Nilus has noted before, he’s one of the world’s best long-term investors. He has a knack for buying low and selling high. And his Berkshire Hathaway holding company has been a great multi-year performer for investors. It has amassed stakes in … Continue reading

Hyperinflation occurs when a country’s bond market breaks. In other words, the sovereign nation is no longer able to fund itself. Its bonds fall (yields rise) to the point where the government has to print money or default….

If you spent $1 million per day from the time of the founding of Rome – roughly 2,700 years ago – until today, you would have accumulated about $1 trillion in debt. Now, double that amount. And that’s the size of our annual foreign borrowing obligation…..

…In a debt crisis, Washington, Wall Street and European governments still seem to think that the only way to “restore investor confidence” is to pump in massive amounts of rescue capital, bail out the sinking ships, and plug the biggest leaks in the system…..

This 30-page update (in PDF form) looks at Precious Metals, Stocks, Commodities, Bonds, Currencies and China….

Ferguson notes how spiraling debt and deficits foster a loss of investor confidence…..

The fact that the U.S. dollar has managed to hold its own despite representing a country deeply in hock is only testament to the weakness of every other major developed-world government.