Replies

"Other countries are already having their sovergnity challenged and infringed upon by others - Greece is just the most glaring example for now."

Do we normally respect and uphold "sovereignty" for thieves? No. We don't respect empire, either.

Our US debt regime is not dependent on little, kleptocratic debt regimes of southern Europe. Those places will return to getting what they produce.

Our US debt regime is caused by the social (fascist) politics of an influx of antithetical Europeans over more than 100 years--those who've countered the purpose of early America's first groups of settlers (Puritans, Huguenots, early Presbyterians, Sephardim, all). Our US debt regime is its own and will see its own consequences.

Oil will continue up in the long run, BTW, and the dollar, down. A currency will follow its volume of production of real and useful goods.

familyop, at the top of the capital chain, there is no difference between ‘sovereign’ and ‘unsecured’ debt.

All government debt throughout the world is ‘unsecured’ - what is the ‘full faith and credit’ of a sovereign government that can not pay it's debt? What, then, is the debt of that sovereign worth to an investor?

When that happens, the government bonds already issued and held by investors begin to fall in current cash value (what it can be sold for today versus the originally paid issue price) and that government finds itself having to pay interest rates on newly issued 10 year bonds that make your 29.99% credit card look like free money.

Take a look at the Greek, Portugese, Spanish and Italian 10 year bond rates - the higher the interest, the more trouble the country is in.

Conversely, the United States and German 10 year bonds are trading at or near all time record low interest rates. For now.

Further explanation of the reasons for the US 10 year being where it is can be found in a post I made on September 11, 2011 -

http://www.freerepublic.com/focus/f-chat/2776797/posts

So far, I've seen nothing since that post to cause me to change anything in it.

The Greeks are not thieves, but their sovereign government is bankrupt.

“Our US debt regime is not dependent on little, kleptocratic debt regimes of southern Europe”, but it is dependent on the world's largest financial institutions, and we are going to loose some, part, or all of them before this is over.