Whenever you see something like this...
LONDON—Spanish and Italian bond spreads over German bonds rose sharply to new highs, as did the cost of European sovereign-debt insurance, while the euro kept tumbling as euro-zone contagion fears continue to roil currency and debt markets.
Remember that 18 months ago...before anyone expressed a concern about "Sovereign Debt" I said this...
I don’t want to be a doomsayer or anything, but it looks to me like the world is headed for financial collapse.
Let’s face it Americans can’t afford this much government. The American standard of living is being propped up by government expenditures that are being financed by nearly one trillion dollars in Chinese loans. Americans in turn use these Chinese loans to buy Chinese goods—so our huge trade deficit is financed by our huge national debt. That’s about as sustainable as investors lining up to flip houses the town of Maricopa.
Voters of both parties support candidates who will give them the most goodies—but the federal government can’t afford to buy your old car, finance your new house, or replace your eighty- year old knee.
The deficit in president Bush’s final year was an outrageous 400 Billion dollars…the White House projects that in President Obama’s first year the deficit will be four times higher—one point six trillion dollars.
I don’t have a solution. It’s not like either political party is actually willing to balance the budget. All I can say is that in the not too distant future, it’s all going to come crashing down and it’s not going to be pretty."