The Second Round of the Crisis Will DWARF 2008 In Size and Scope
By: Graham Summers
GoldSeek.com
Thursday, 5 March 2015
If you are an investor, your big concern should not be about what to stocks… but what happens when the bond bubble goes bust.
All of the biggest problems in the financial world revolve around the bond markets today:
1) Greece’s sovereign debt crisis
2) The Bank of Japan is purchasing ALL new debt issuance in Japan.
3) The Fed is terrified of higher interest rates because ever 1% change means over $100 billion more in interest payments on the US debt.
For 30+ years, sovereign nations have been papering over the decline in living standards by issuing debt. In its simplest rendering, sovereign nations spent more than they could collect in taxes, so they issued debt (borrowed money) to fund their various welfare schemes.
This was usually sold as a “temporary” issue. But as politicians have shown us time and again, overspending is never a temporary issue. Today, a whopping 47% of American households receive some kind of Government benefit. This is not temporary… this is endemic.
All of this is spending is being financed by borrowed money… hence, the bond bubble, the biggest bubble in financial history: an incredible $100 trillion monster that is now growing by trillions of dollars every few months.
The Rest…HERE
