Eurozone could risk 'sovereign debt explosion'(coming Euro bond glut)

Europe's governments are at increasing risk of an interest rate shock this year as the lingering effects of the Great Recession drive debt issuance to record levels and saturate bond markets, according to Standard & Poor's.

"Debt-related sovereign vulnerabilities have increased, particularly in the Eurozone, where we expect government borrowing will rise to further new peaks," said Kai Stukenbrock, the ratings agency's European credit analyst. "The resulting fiscal pressure from a sustained increase in financing cost could be significant in our view."

The warning comes as bond giant PIMCO spoke of a "sovereign debt explosion" that has taken the world into uncharted waters and poses a major threat to economic stability. "Our sense is that the importance of the shock to public finances in advanced economies is not yet sufficiently appreciated and understood," said Mohamed El-Erian, the group's chief executive.

Standard & Poor's said Europe's states need to raise €1,446bn (£1,313bn) this year as the full damage inflicted by the credit collapse – masked last year by emergency stimulus measures – becomes ever clearer. This will become harder to fund cheaply as central banks start to tighten. "We believe that benchmark yields have benefited from liquidity injections into the financial sector and quantitative easing measures by the Bank of England and the Federal Reserve. As that support could eventually be withdrawn from 2010, excess supply in government bond markets could start driving benchmark yields back up.

It was done intentionally by those unelected bureauocrats in the EU, along with the UN and their cohorts the Club of Rome who are the shadow genius behind the scenes. They’re doing the same thing here. I would never have written that until this year but everything is on the table for me now. Sustainable Development aka Marxist/Fascism will break any bank and then it’s anarchy followed by martial law.

Yes. Here’s some background on the Club of Rome. They’re not the only favored constituent group involved. Some of the more well known and popular organizations are influencing government in the same direction (Club for Growth, for one).

Manufactured scarcity The profits of deindustrialisation
http://www.freerepublic.com/focus/news/2122661/posts

Ehrlich is a doomsday Malthusian who rather famously lost a very public bet with Julian Simon.

“In 1968, Ehrlich was the author of a popular book, The Population Bomb, which argued that mankind was facing a demographic catastrophe with the rate of population growth quickly outstripping growth in the supply of food and resources. Simon, a libertarian, was highly skeptical of such claims.”

Simon-Ehrlich wager
http://en.wikipedia.org/wiki/Simon-Ehrlich_wager

All of [Ehrlich’s] grim predictions had been decisively overturned by events. Ehrlich was wrong about higher natural resource prices, about “famines of unbelievable proportions” occurring by 1975, about “hundreds of millions of people starving to death” in the 1970s and ‘80s, about the world “entering a genuine age of scarcity.” In 1990, for his having promoted “greater public understanding of environmental problems,” Ehrlich received a MacArthur Foundation Genius Award.” [Simon] always found it somewhat peculiar that neither the Science piece nor his public wager with Ehrlich nor anything else that he did, said, or wrote seemed to make much of a dent on the world at large. For some reason he could never comprehend, people were inclined to believe the very worst about anything and everything; they were immune to contrary evidence just as if they’d been medically vaccinated against the force of fact. Furthermore, there seemed to be a bizarre reverse-Cassandra effect operating in the universe: whereas the mythical Cassandra spoke the awful truth and was not believed, these days “experts” spoke awful falsehoods, and they were believed. Repeatedly being wrong actually seemed to be an advantage, conferring some sort of puzzling magic glow upon the speaker.

So Ehrlich fits right in with modern Leftists.

Thanks for jogging my memory. ...very interesting reading. It appears that Malthusian thought is getting to be more common, as the economy worsens. ...some sort of guilt or fear avoidance, I reckon. The years to come may be harder on some of the people rationalizing that way than most—especially government-supported liberals. Cuts in spending will probably be made too late, and consequently, will be extremely large cuts.

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