Well.. I don't want to believe it.
But I have a very bad feeling this time. No, I am not predicting a default. Rather, my unease stems from the sheer size and spread of the debt problem all around the world. I cannot see how this global FUBAR situation will be resolved without wrenching upheaval, given that political and financial leaders clearly do not want to address the problem at its core, never mind the common people.
I have frequently referred to Permagrowth as the root cause of the Debt Crisis, i.e. the single-minded expansion in the consumption of everything, fuelled by ever more debt. Obviously, exponential growth within a closed system leads to disaster.
If we do not willingly renounce Permagrowth as our leading economic paradigm what I fear is ahead is an involuntary and abrupt end, one that will result in chaos.
Think of putting a pressure cooker on the stove, with the safety valve closed...