A Global Album Of Sovereign Insolvency

Tyler Durden's picture

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LawsofPhysics's picture

This will get interesting should China buy into ponzinomics right about the time it all collapses.

Crisismode's picture

 China will play the Euro off against the Dollar like a violin.

The Chinese have a big seat at this poker game, and will go all in at just the right moment.

However, they just might outsmart themselves . . . if they get too cocky.

Mr Lennon Hendrix's picture

And they will cash in their chips for gold and silver.

Arch Duke Ferdinand's picture

""And they will cash in their chips for gold and silver.""

...The rich ones will relocate to Vancouver BC,

North America's Geneva of Switzerland.


goldenbuddha454's picture

China is the only solvent country out there right now.  They'd be smart to not get into ponzinomics. 

bonddude's picture

The bank failures are stacking up. Unfortunately, this 1 was not TBTF.


blunderdog's picture

If you're going to spam for a website, why not just be upfront about it and plaster the link on every thread?

Bigger Dickus's picture

Which one falls more tomorrow? Gold or eur/usd?

Just want to get a general sentiment feel.

Arius's picture

gartman, the best commentator after cramer says to buy gold in euros - change dolars in euros and then buy gold but DO NOT buy gold direct w/ dolars....WHATEVER....

Crisismode's picture

What is the reasoning behind that???

All you end up doing is paying currency exchange fees.

Arius's picture

yeah i know...go figure...i guess thats the best he could come up w/ after running out of excuses to sell gold.

red2893's picture

you ever see gartman's returns on his hedgefund...not so good



DosZap's picture

I'm afraid the USD will take the PM's down, unless Asia really comes thru.

China,IMHO,is bailing Spain, so it can double play the dollar,and contiue offloading into hard assets, commods asap.

China does nothing for nothing.

robertocarlos's picture

Portugal is under IMF pressure. Is it Portugal>Spain>USA?

Bubbles...bubbles everywhere's picture

The european propaganda machine is quite effective.

Horatio Beanblower's picture

Let's face it, they have had plenty of practice. 

DoctoRx's picture

Where did the metric of govt debt:GDP come from?  IMO what is at least as relevant is ratio of govt receipts to expenditures.  This makes the US look far worse.  It also looks for now that we have the opposite of the virtuous gridlock of the 1994-2000 era wherein the Repubs wouldn't let Clinton increase spending and he wouldn't let them cut taxes.  Thus we ended up w a cash budget surplus.  

When Bill Gross of all people writes that the US govt is running a Ponzi scheme, it's time for even the sheeple to stop taking their Soma (to mix some metaphors).

MachoMan's picture

Bingo...  That would be too simple though.  This way, you can screw with metrics to yield the desired debt:gdp ratio...  given the plausible relationship between spending and gdp growth...  meaning, debt increases, but so does gdp...  of course, that presumes the stimulus actually succeeds at stimulating the economy and they're not just pulling numbers from their ass...  a substantial stretch by all accounts.  [when the stimulus wears off, we'll just be that much worse with the increased debt].

Chartist's picture

If everyone is insolvent, isn't it true that no one is insolvent?

blindman's picture

it means the system is a lie and is insolvent.

the people need to recognize the difference.

Thomas's picture

No. It means that collective societies are expecting more on per person basis than the collective societies can produced. They were over promised.

AnAnonymous's picture

If everyone is insolvent, isn't it true that no one is insolvent?


Would be too good. It means that the insolvent can no longer tap into the solvent to pretend they are solvent. A nasty situation as there is no way out for the insolvent.

blindman's picture

the crash of 1929




.." master of malpractice" jca


Greenspan: Prove I Was Wrong! ... 

" i'll basically say this that the stock market, overall,  is the only

type of stimulus that you can get in the economy that doesn't

have any debt associated with it." .......


comment: intellectual chum, the banksters are fishing.  watch out below.

when will he be on larry king?  or is he now the larry king of the fed?

YHC-FTSE's picture

Read my mind - Many thanks for this list. Precisely what I've waited and wanted to see from ZH for a couple of months. 

Hulk's picture

Bob Brinker currently interviewing Christopher Whalen, its  a must listen.

Chris just took Bob, who is a supporter of the fed, to the woodshed on abolishing the fed board of governors 

and establishing a pm backed currency...

ebworthen's picture

Heard that on the radio a couple of hours ago, good stuff.

Bob Brinker was having a hard time; the old stalwarts like him that still believe we have "free markets" and that the game is not a rigged Kleptoligarchy - they just want to keep believing in the dream.

Wake up Bob and Larry and...

Hulk's picture

you pegged it. Bob is coming around, slowly though. No hope for Kudlow...

stormsailor's picture

/es opened gap down,  oh no, batten down the hatches

EscapeKey's picture

Geez, the markets aren't open, and yet Marketwatch has a bullish headline.

Obviously, when you actually click on the headline, you find the story contains the key word "may".

Absolute fucking liars.

U.S. gets boost from retail

 Economic data to be released this week may begin to show that the virtuous economic cycle is slowly, creakingly, starting to turn.

RobotTrader's picture

It's true.

Just look at restaurant stocks like Panera Bread or Cheesecake Factory.

Pinned at the highs.

And unlike the resource stocks, they are unfazed from:

-  PIIGS defaults

-  Strong dollar

-  Inflation vs. deflation

-  9.5% unemployment

-  $14 trillion deficits

-  Endless crash forecasts from the doomers

Weisbrot's picture

with so much bad news, and so much cheerleading, it makes me wonder if there really are some good guys out there somewhere doing the right things for us common folk.

Salinger's picture

ATT. George Washington

Market on alert over BP leak

By Sheila McNulty in Houston

Published: January 9 2011 20:18 | Last updated: January 9 2011 22:35

Oil markets were braced on Monday for the impact of the loss of up to 15 per cent of US crude after a pipeline leak forced BP the UK-based oil company, to shut down 95 per cent of production from North America’s biggest field.



BankRiot's picture

Prob a BS reason to curb supply.  Lindsey Williams claims Oil is on its way to $150-200 of today's dollars.

tony bonn's picture

the real gdp numbers for the usa are total unmitigated undoctored horseshit straight from the horse's ass....the government so distorts inflation - hence gdp - that even pinochio would blush...the government adds and removes housing from the inflation numbers whenever it wishes....after the housing crash became prominent it added housing again to the index et voila the inflation numbers declined....this is total and complete fraud brought on first by the clinton shysters...

the impact is that since inflation is much higher than the cooked figures show, gdp growth is much lower - nay - even negative...the usa economy is shrinking and has been doing so non-stop since 2000....this is why unemployment is 25%....


EscapeKey's picture

Without imputations + hedonics, GDP (2009) I believe was $8.65tn.

M.B. Drapier's picture

No promise not to restructure the [Irish] senior unsecured bank debt was part of the EU/IMF programme.

This is quite possibly true, but I don't know if it's known to be true. The problem is the side-letter:

The Government has withheld from publication a side letter agreed with the EU and IMF outlining confidential measures for the banks and tax changes to be included in Tuesday’s budget.

CrashisOptimistic's picture

This article and analysis has zero value.

It is easy to determine this is true.

In all this gobbledygook about the growth of who, when, there is NOT A WORD OF MENTION ABOUTTHE ALPHA ASSET OF CIVILIZATION: OIL.

StarvingLion's picture

The Council on Renewal (Hahaha) is ceasing operations after 1 year.  They are giving up on Amerika:


"It’s an illusion to think arguing about finance, economics, and markets will fix anything

There is no way around it because the ruleset we’ve lived within for decades was not sustainable. It depended upon exponential growth, exponential debt, exponential resource consumption, and exponential environmental impact.

As the world goes through a necessary reset of the rules, we will experience significant upheaval. "


Oil is an alpha asset?  Not according to this FIAT lover.  Guess what he thinks is the biggest investment opportunity of a lifetime?  Ans: LABOUR.  Yep, you got it, LABOUR.  Holy shit, is he deluded.


blunderdog's picture

This is a terrific piece, but I'm in strong agreement with the previous post from DoctorX who points out the folly of a "Debt to GDP" ratio.  My gripe is more simple-minded, though: GDP just isn't measured accurately.

"Debt to revenue" would seem a far more useful metric, but I suspect it'll never be published because it makes the bad news so obvious even the average 20x-leveraged underwater homeowner would start to worry.

twotraps's picture

Check out the situation in Illinois where Gov Quin is trying to raise taxes in a big way without much mention of fixing the larger problem.  There is No 'out of bounds'....absolutely No appreciation for the gravity of it.  How Stupid are we to put up with it?  Everyone is shocked with debt/gdp ratios but two issues dominate the topic for me.........1. Agree or not, like it or not....what can be done if it all goes pear shaped, where will money run to and how to protect assets you have.    2.  Govt driven by a union-type mentality will eventually run it into the ground, like Illinois.   Maybe the govt can get into a partnership with the unions...like GM.  What a joke.

gwar5's picture

Agree, what will China do when Eurozone really starts to melt down?

Drag Racer's picture

Brazil Accuses US, China of Currency Manipulation; Intense Monetary Tightening in China; Iceland Solution Temps Ireland; Unprecedented Hell in Belgium