Posted on 05/02/2010 6:59:22 AM PDT by TigerLikesRooster
The Future Of The Global Public Debt Explosion
John Mauldin | May. 2, 2010, 8:48 AM | 462 | comment 5
Everyone and their brother intuitively knows that the current government fiscal deficits in the developed world are unsustainable. They have to be brought under control, but that requires some short-term pain. Today we look at a rather remarkable piece of research from the Bank of International Settlements (BIS) on what the fiscal crisis may morph into in the future, how much pain will be needed, and what will happen if various countries stay on their present courses. Some countries could end up paying north of 20% of GDP just on the interest to serve their debt, within just 30 years.
Of course, the markets will not allow that to happen, long before it ever gets to that level. And what makes this important is that this is not some wild-eyed blogger, it's the BIS, a fairly sober crowd of capable economists. We will pay some attention. Then I'll throw in another few paragraphs about Goldman.
But first, I want to bring a very worthy cause to your attention. For my Strategic Investment Conference last weekend, Jon Sundt and I bought some mighty fine wine for our guests. That of course, is to be expected. But each of those bottles also bought a wheelchair for someone in a most needy part of the world. Here's the story.
Gordon Homes at Lookout Ridge Winery in Napa Valley has gotten five cult winemakers to create special wines for him. These are winemakers whose production is sold out well in advance - they're the all-stars of wine (like Screaming Eagle). And while they can't sell them from their own wineries, they blend these special signature wines for Lookout Ridge.
(Excerpt) Read more at businessinsider.com ...
P!
they’re merely trying to assess “how much pain they can successfully impose” before risking the guillotine...
The debt spending of the federal and state governments is nothing short of treason.
Obamacare may help some of this. For those who remember Logan’s Run, focus on Carousel for an allegory for Obamacare.
This is why it seems to me, that the stock market is no longer much of an indicator of value. Too much of it is shell games and illusions, ponzi schemes and short term perversions, because government protects some from loss and otherwise distorts everything.
I don’t see any politician or the US population itself willing to do the right thing. It’s going to proceed to disaster and what follows will as likely be socialism as capitalism..probably more likely although 25 or 30 years of socialistic control and rationing might turn people around.
I suspect that the Government’s way of dealing with the markets will be to brand any financial instittuion that demands a higher yield an unpatriotic racist. That instition will then be demonized; next its officers will be interned and re-educated. Eventually, this policy will be extended to ordinary citizens who don’t “give till it hurts” to maintain the crumbling facade of entitlement spending.
Socialism NEVER works. Most of these politicians are going to find themselves in JAIL at best.
The Godly wisdom in the TEA party movement may be our only hope.
"The art of taxation consists in so plucking the goose as to obtain the largest possible amount of feathers with the smallest possible amount of hissing." - Jean Baptiste Colbert
Nothing happens in this world without reward. Socialism works because it rewards those that advocate it. It might not work for you. It might, in the long run, not work for the society. But for now, citizens, wealth is ripe for picking. Sheeple are for shearing..
thanks for the ping
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