Posted Feb 22, 2013 by Martin Armstrong
If anyone doubts we are in a serious Sovereign Debt Crisis, then explain why even the Credit Agencies are cutting the credit ratings of sovereign nations. There was France, and now there is the UK. Moody’s cuts the UK Credit Rating to Aa1 from Aaa, citing weakness in the nation’s medium-term growth outlook that it now expects to extend for a number of years. Europe should put in a NEGATIVE growth rate in GDP for 2013. We are in absolute denial that the world around us is crumbling. Only those who are on point and think outside of the box will even survive. The rest as usual will see their futures stripped from them. This will be the most important event in our lifetimes.
The last generation that saw the Sovereign Debt Crisis of 1931 watched over 3,000 banks fail in the United States and capital simply when into hibernation. Government is doing absolutely everything they could do wrong at the perfect time to ensure we are in a shit-load of trouble. Forget the hyperinflation nonsense. These people are not about to print into oblivion. They are under pressure from the bondholders to pay and that means austerity, reducing spending, and raising taxes. Just look at these policies and their effect in Greece. Welcome to the real world where reality cannot be ignored forever. Interest rates will rise and as they do – oh boy! This is the serious issue of the Sovereign Debt Crisis.