The Debt Riddle That Elites Are Trying to Solve

by James Rickards
Daily Reckoning

The biggest problem confronting the global monetary elite is sovereign debt. There’s too much of it, it’s growing fast and it cannot possibly be paid off in real terms. A default larger than any in history with trillions of dollars in losses for investors is coming sooner rather than later.

The only question is what form the default will take. Once the form of the default is ascertained, it’s easy to estimate the winners and losers and the approximate timing.

The first myth that needs to be busted is the idea that the world “learned its lesson” in the 2008 crisis and the system has been made safer since then. It’s not true. In fact, debt has been piled on debt since 2008.

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