Global Debt Yields on the Rise: Goldman Sachs Warns of Troubling Trends Ahead..

Citizen Watch Report ^

[davikkm]

In their crystal ball analysis of major developed bond markets (sorry, Japan, you’re not in the spotlight this time), Goldman Sachs is waving the flag of concern. The math here is simple: for every one percentage point rise in the public debt-to-GDP ratio, expect medium-term yields to jump at least two basis points throughout the decade. And oh, they conveniently exclude government bonds currently cozying up in central banks’ pockets, implying a broader impact on global financial markets.

[linMcHlp]

Horace Greeley Schact

Schacht first gained a national reputation when he became currency commissioner in 1923 and in that position played a vital role in the stabilization of the currency after the runaway inflation of 1922-1923 by the creation of the new Rentenmark. In December 1923 his fame as the "savior of mark" brought him an appointment to the presidency of the Central Bank, which he held until 1930.

Schact arranged a secret borrowing of gold, but only revealed the gold reserve itself - that he used to borrow money.

That, plus the new currency based upon what Germany could produce (as real crops and goods in demand) - showed that Germany could produce its way out of the hole.

But German government officials were greedy for power and recognition, and they wrote checks for projects beyond the pace of recovery, thereby sending Germany into greater debt.

See the book, Hitler's Banker.