US government debt is a safe haven the way pearl harbor was a safe haven

[pkd]

Ferguson and Faber: Sovereign Debt Crisis Will Spread World-Wide, U.S. Debt Is Unsafe




In a must-read essay, Niall Ferguson slams the prevailing Keynesian consensus, and says that the sovereign debt crisis in Greece will spread to America:


What we in the western world are about to learn is that there is no such thing as a Keynesian free lunch...

US government debt is a safe haven the way pearl harbor was a safe haven in 1941.


And in a must-watch interview, Marc Faber says that the US, Europe and the entire developed world will default on their debt:
http://plus.cnbc.com/rssvideosearch/action/player/id/1409986641/code/cnbcplayershare

 

[S-2]

"Marc Faber says that the US, Europe and the entire developed world will default on their debt:"

Somebody has to have the guts to call the note first. In so doing we may or may not default the debt. That's utter speculation at this point and dangerously self-serving.

First, those holding western paper must cease buying more. That will suggest risk exceeds return. Most here pray that the western-based economic model collapses. They do so believing that some special relationship with the PRC will leave them standing tall amidst the heap of western despair lying about them while becoming minions to their new masters. Of course, for such to be the case, America and others will have to fall far further than they've thus far done while the PRC and its minions show the same incredible rates of growth.

How's Pakistan's growth models these days and how is the PRC supporting such? Are they your #1 trade partner? Is that trade balanced in your favor?

How all the above might happen seems largely unexplained.

Secondly, they must then pass into the next realm that defies maintaining the status quo and, instead, suggest a better plan. Perhaps that includes making calls on their paper.

Third, they must prepare for the consequences of such. Debt is actually a very small portion of that total economic implication. Making such a call might be honored (or not) but that doesn't mean that it would be appreciated. The consequences of doing so might seem an unfriendly act. How that impacts matters such as bi-lateral trade are difficult to measure but one can surmise that the PRC might be negatively affected by such.

We buy from the PRC because it makes sense. When it doesn't for economic or political reasons, it is not to assume that other suppliers don't exist nor that price/quality is skewed so dramatically as some might like.

Thanks.

 

[Honor]

"Marc Faber says that the US, Europe and the entire developed world will default on their debt:"

Somebody has to have the guts to call the note first. In so doing we may or may not default the debt. That's utter speculation at this point and dangerously self-serving.

First, those holding western paper must cease buying more. That will suggest risk exceeds return. Most here pray that the western-based economic model collapses. They do so believing that some special relationship with the PRC will leave them standing tall amidst the heap of western despair lying about them while becoming minions to their new masters. Of course, for such to be the case, America and others will have to fall far further than they've thus far done while the PRC and its minions show the same incredible rates of growth.

How's Pakistan's growth models these days and how is the PRC supporting such? Are they your #1 trade partner? Is that trade balanced in your favor?

How all the above might happen seems largely unexplained.

Secondly, they must then pass into the next realm that defies maintaining the status quo and, instead, suggest a better plan. Perhaps that includes making calls on their paper.

Third, they must prepare for the consequences of such. Debt is actually a very small portion of that total economic implication. Making such a call might be honored (or not) but that doesn't mean that it would be appreciated. The consequences of doing so might seem an unfriendly act. How that impacts matters such as bi-lateral trade are difficult to measure but one can surmise that the PRC might be negatively affected by such.

We buy from the PRC because it makes sense. When it doesn't for economic or political reasons, it is not to assume that other suppliers don't exist nor that price/quality is skewed so dramatically as some might like.

Thanks.

We do not believe in seeing western economic collapse. It is too big to fail like the big banking sector.

West will still be important until China regained her GDP to be 40% of world GDP.

If West default their debts now, whole world will be in a chao! No one will sell to the West anymore. The world now will be irrelevant.