Will sovereign debt cause the next crash. Probably. The US of A will not be immune. Trillion-dollar debt and no ways of repaying it other than default or inflation. Default is more honourable but politicians are involved so there you go.
When sovereign debt crashes investors will be shaken, stirred and panicked. They’ll stampede into hard assets like real estate, commodities, precious metals etc.
Hey Canada suddenly looks real good. Balanced Budget, big but not ridiculous debt, oil, gold, commodity, intelligent peace-loving people with a penchant for funded healthcare. Hmm may go long Canadian Dollar.
George Gutowski writes from a Caveat Emptor Perspective
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