Explosion of the Western Public Debt Bubble

… Financial Shocks in Europe and AmericaPublished on Global Research.ca, by Global Europe Anticipation Bulletin,  December 17, 2010.

… In this issue, we have chosen to present an excerpt of the forecast on the explosion of the Western public debt bubble. Thus, the Western public debt crisis is growing very rapidly under the pressure of four increasingly strong limitations:

  • the absence of economic recovery in the United States which strangles all public bodies (including the federal state (10)) accustomed to an easy flow of debt and significant tax revenues in recent decades (11)  
  • the accelerated structural weakening of the United States in monetary, financial as well as diplomatic (12) affairs which reduces their ability to attract world savings (13)
  • the global drying up of sources of cheap finance, which precipitates the crisis of excessive debt in Europe’s peripheral countries (in Euroland like Greece, Ireland, Portugal, Spain, … and the United Kingdom as well (14)) and is starting to touch key countries (USA, Germany, Japan) (15) in a context of very large European debt refinancing in 2011
  • the transformation of Euroland into a new “sovereign” that gradually develops new rules for the continent’s public debts.

These four constraints generate varying phenomena and reactions in different regions / countries … //

… In short, according to LEAP/E2020, we should expect a huge operation of sovereign debt transactions (amid a government debt global crisis) which will offer Euroland guaranteed Eurobligations at very low rates in exchange of national securities at high interest rates with a 30% to 50% discount since, in the meantime, the situation of the entire Western public debt market will have deteriorated. Democratically speaking, the newly elected Euroland leaders (28) (after 2012) will be fully authorized to effect such an operation, of which the major banks (including European ones (29)) will be the first victims. It is highly likely that some privileged sovereign creditors like China, Russia, the oil producing countries,… will be offered preferential treatment. They will not complain since the undertaking will result in their sizeable assets in Euros being guaranteed. (full text).

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