Sunday, July 19, 2015

The epidemic plague of debt and sovereign insolvency is accelerating around the world

When it comes to the financial state of most of the world’s economies, Greece is simply the most popular one right now to discuss within the daily news cycles.  However, since the inoculation given by most central banks after the 2008 credit crisis was to increase debt in an attempt to both recover from recession, and stimulate economic growth, the cure is proving to be much worse than the disease.
Greece has an unsustainable debt that has been conceded to by both the IMF and ECB, but the Southern European nation is just the tip of the iceberg for a growing epidemic of countries that are already insolvent, and carrying so much debt that it is mathematically impossible for them to pay off in this current monetary climate.  In fact, there are at least 24 insolvent and bankrupt nations, with another 14 very close to that same level, that are the tip of the iceberg since there appears to be no end to the debt plague that has engulfed the entire world like a ever growing black hole.


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