Article Image
News Link • Economy - International

They Admit Default

•, By Bionic Mosquito
The sovereign defaults in industrialized western nations have begun, at least according to Ambrose Evans-Pritchard:
Britain has just carried out one of the greatest victimless crimes in modern financial history. It is in effect wiping out public debt worth 20pc to 25pc of GDP – on the sly – without inflicting serious macroeconomic damage or frightening global bond markets.
Let me check yields on British sovereign debt…mmm, AEP is correct; there seems to be no reaction to this significant event.
Governor Mark Carney more or less acknowledged this morning that the Bank of England will never reverse its £375bn of Gilts purchases.
Sure – why reverse?  There has been no visible harm to date from the explosion of central bank balance sheets.  Hold the sovereign debt until maturity, and even roll it over at that point.

Join us on our Social Networks:


Share this page with your friends on your favorite social network: