Posts Tagged

Sovereign debt

Government debt is a burgeoning issue, but the solutions are thus far a damp squib. Despite claims otherwise, the debt crisis is not one that has been solved – not even partially. Recently, European leaders saluted an agreement on settling  part of Greece’s outstanding debt– largely by canceling it. Yet, European governments have merely found a way to roll debt over, with debt levels scheduled to increase further, at least until 2016. Interest rates on government bonds should increase correspondingly – hence the rating agencies’ downgrades. Unless we encounter solid growth throughout Europe, we are heading toward further turmoil. Far from attempting to be pessimistic, I solely seek to reflect on the reality of the situation and what it may entail for the future. What leaders haven’t …