Was just listening to some extracts from a debate on CNBC. Well, wasnt much of a debate, rather a pretty much unanimous view of what was going to happen in the next 2-3 years. The gist of the views of the panel including people like Martin Wolf (Chief economist for the FT), and various former Government / central bank chiefs from across the world was this:
The crisis to date has been a private sector liquidity and credit crunch. Concerted global government intervention and liquidity measures have avoided a 1930's style depression, but the debt burdens of the world's governments are now well beyond anything seen before. This is especially the case in the US, and a dollar crisis is inevitable in the next 2-3 years, as the US debt burden becomes too big, and i guess other Governments stop buying, or sell, US Treasuries.
What has happened to date feels pretty bad to all us 'little people', but what is the risk of a global government, rather than private, financial crisis? This would presumably be 10 times worse, with governments unable to pay welfare, and support services to the extent that they do currently! I am no economist so am interested in what the repercussions might be of the dollar collapsing under the weight of US government debt?
Is it time to buy a gun, Mad Max style?!?
The crisis to date has been a private sector liquidity and credit crunch. Concerted global government intervention and liquidity measures have avoided a 1930's style depression, but the debt burdens of the world's governments are now well beyond anything seen before. This is especially the case in the US, and a dollar crisis is inevitable in the next 2-3 years, as the US debt burden becomes too big, and i guess other Governments stop buying, or sell, US Treasuries.
What has happened to date feels pretty bad to all us 'little people', but what is the risk of a global government, rather than private, financial crisis? This would presumably be 10 times worse, with governments unable to pay welfare, and support services to the extent that they do currently! I am no economist so am interested in what the repercussions might be of the dollar collapsing under the weight of US government debt?
Is it time to buy a gun, Mad Max style?!?