"Bets rise on rich country bond defaults"

The very fact that debt is rising so fact, even as banks are largely not loaning money to the job producing sector of the economy is evidence enough to me to indicate that not only the bonds are in trouble but of course the underlying fiat currencies which sit on ever increasing and unpayable debt obligations.    The only path out for the deeply indebted nations, and the central banks that have taken what I believe are largely illiquid assets on in turn for cash and bonds is for the central banks to begin debasing the currencies.   Its either decrease the value of the super indebted currencies or the entire system will have to fold.    The dollar needs to fall dramatically to balance the trade imbalances but there is an event horizon (i.e. a tipping point) beyond which we reach the Zimbabwe Affect.   Let's hope that doesn't happen.  In the meantime, I'm buying more physical silver and gold and good mining stocks on the pull backs .

Bet's rise on rich country bond defaults

excerpt:

"…Gary Jenkins, head of fixed income research at Evolution, said: "The biggest single risk hanging over the bond markets is the rapid rise in public debt in the industrialised world. If we get to a point where the market thinks the levels of debt are unsustainable, then we will see an almighty selloff in the government bond markets, with yields soaring. Governments need to take action to cut deficits and debt."

Fitch Solutions, the data arm of the Fitch Group, said that there is almost as much uncertainty in the CDS market about the outlook for the developed economies and their bond markets as there is for emerging economies…."

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