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Kim Dotcom Breaks Down the True Scale of US Government Debt
KIM DOTCOM BREAKS DOWN THE TRUE SCALE OF US GOVERNMENT DEBT New Zealand tech CEO, Kim Dotcom did the math on the United States’ sovereign debt and he tweeted a thread about it, saying it may the most important thread that he may ever make. Kim explains that US spending and debt have spiraled out of control […]
Blain’s Morning Porridge – May 11th 2020 – Bond Triggers Tumble
Blain’s Morning Porridge – May 11th 2020 – Bond Triggers Tumble “When this baby hits 88 miles per hour, you’re going to see some serious…. “ After last night’s Boris announcement on not reopening the economy, it clearly doesn’t need any further explanation.. (US Readers – complex sarcasm alert.) Over the course of the lockdown, I’ve been […]
“Yellow Light” – Is The Credit Market Finally Reversing
“Yellow Light” – Is The Credit Market Finally Reversing Keep digging Yesterday, the European Central Bank held a stand-pat meeting, keeping the benchmark deposit rate at negative 40 basis points. However, ECB president Mario Draghi indicated that rate cuts and a resumption of asset purchases are on tap for September. In the accompanying presser, the outgoing […]
Five Pillars of Debt Default
Five Pillars of Debt Default Regular readers of Gold Goats ‘n Guns know that I’ve been handicapping a major sovereign debt default to begin here in 2018 or early 2019. But, what do I mean by that? How does a sovereign debt default come about? And who will default? There are a staggering number of factors […]
Which Banks Are Most Exposed to Italy’s Sovereign Debt? (Other than the Horribly Exposed Italian Banks)
Which Banks Are Most Exposed to Italy’s Sovereign Debt? (Other than the Horribly Exposed Italian Banks) “Doom loop” begins to exact its pound of flesh. Risk. Exposure. Contagion. These are three words we’re likely to hear more and more in relation to Europe, as the Eurozone’s debt crisis returns. On Friday, Italy’s 10-year risk premium […]
The Mind Blowing Concept of “Risk-Free’ier”
The Mind Blowing Concept of “Risk-Free’ier” The Earth is flat Cigarettes are healthy Leeches are the cure for everything The universe revolves around the Earth California is an island Red wine is healthy, unhealthy, healthy… Facts are essential as they offer humans a sense of stability in a chaotic world. For instance, we find comfort […]
Despite Years of ECB’s QE (Ending Soon), Italy’s “Doom Loop” Still Threatens Eurozone Financial System
Despite Years of ECB’s QE (Ending Soon), Italy’s “Doom Loop” Still Threatens Eurozone Financial System Even banks outside Italy have an absurdly out-sized exposure to Italian sovereign debt. The dreaded “Doom Loop” — when shaky banks hold too much shaky government debt, raising the fear of contagion across the financial system if one of them […]
Debt is a Determining Factor in History
Debt is a Determining Factor in History Photo by airpix | CC BY 2.0 Sovereign debt has been a crucial factor in a series of major historical events. From the early 19th century, in Latin American countries such as Colombia, Mexico and Argentina, struggling for independence,as well as Greece when seeking funds for its war of independence, these nascent […]
The Long and Winding Road to a Haircut
Federico Parra/Getty Images The Long and Winding Road to a Haircut There are significant differences between Puerto Rico and Venezuela regarding the origins of their economic crises, their political systems, their relationship with the US and the rest of the world, and much else. Nonetheless, some notable similarities are likely to emerge as their debt […]
EU Concern Rising About Italian Debt
EU Concern Rising About Italian Debt The EU Commission is deeply concerned that Italy is under pressure to spend frivolously because of the upcoming elections. The EU is apply more scrutiny for Italy’s huge sovereign debt. Because of the vast size of the Italian economy, the high level of total debt is a major cause for […]
How Cheap Debt Avoids Countries Of Going Bankrupt
How Cheap Debt Avoids Countries Of Going Bankrupt It’s not a secret the cheap debt policy from the European Central Bank has really helped out several European countries to keep the government finances under control. Well, more or less, as several members of the Eurozone are still running huge budget deficits. Source: European Commission When the […]
Europe or Anti-Europe?
Europe or Anti-Europe? MILAN – A knowledgeable friend in Milan recently asked me the following question: “If an outside investor, say, from the United States, wanted to invest a substantial sum in the Italian economy, what would you advise?” I replied that, although there are many opportunities to invest in companies and sectors, the overall […]
