Galt's Gulch

Will Sovereign Defaults Trigger the Next Financial Crisis?

Posted by Vinay 5 years, 8 months ago to Economics
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We justly require an independent financial audit of our corporations. Sovereigns should be subject to a similar discipline, with auditors chosen by a lower house majority and affirmed by the upper house (in democracies).

The vast majority of sovereigns are incessantly running budget deficits.
SOURCE URL: http://www.thesavvystreet.com/will-sovereign-defaults-trigger-the-next-financial-crisis/

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  • Posted by mshupe 5 years, 8 months ago
    The smallest economies with the worst debt to GDP ratios will go first, then the banks in the countries that own it. I guess the dollar will be the safe haven until the global recession causes ever greater inflation.
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  • Posted by DeangalvinFL 5 years, 8 months ago
    No need to audit the obvious. We don't have to pay now, our grandkids can pay later. That is an idea/a mindset. An audit won't help. It might even lend legitimacy to the existence of the debt. "See!!, the auditors verified that it is $22 Trillion. All is well."
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