The U.S. debt keeps growing, and nobody seems to want to stop its growth. But what does the debt actually look like? Who owns it, and what are its components?
France is at a fork in the road, where her political leaders have shrinking maneuverability, where they are running out of time, and where they cannot afford to repeat the mistakes of the past.
With a welfare state that dominates their budgets, European governments are exceedingly vulnerable to a recession. When tax revenue declines and entitlements force governments to spend more, the inevitable result is larger budget deficits. What will the ECB do in response to that?
Several news sources have raised the volume about a possible systemwide banking crisis. I am not going to contribute to that. In fact, we should all be careful about determining whether or not such a crisis is at hand.
Every government with debt on hand, and especially those with debt levels that are already unsustainable, must get to work on a contingency plan for the coming recession.
