– European countries will issue $1 trillion debt this year alone
– Japan will have to roll over $2.4 trillion of debt this year and she will issue $600 billion of new debt
– The USA will issue $1.7 trillion of new debt and she will roll over some $2.6 trillion, if I’m not mistaken.
So, the three biggest economic areas of the world will issue $3.3 trillion new debt in 2010, and they will have to roll over another $6 or $7 trillion. I don’t have the time to check my history books, but I think I can safely assume that this is BY FAR the biggest government debt financing market in the history of mankind, even if adjusted for inflation.
There is no way this can go well… Buckle up and get ready for some wild ride in the bond market! Japan and the US might soon go belly-up if they don’t massively cut spending and increase taxes. I can’t believe that mankind has not learned from Germany 1923, United Kingdom 1970s, Latin America 1980s, or Japan 1990s/2000s.
Everybody born between 1970 and 2000 will have to clean up this mess in the next decades. It’s really depressing, if you think about it, how multiple generations are f****d because some politicians can’t get their heads out of their a****.