Sunday, April 20, 2008

Could the world's biggest debtor default?

From Naked Capitalism
The idea that the US would default on its debt seems inconceivable. Nevertheless, we are in the same position as Thailand and Indonesia, circa 1996, except we have the reserve currency and nukes. It will be interesting to see how those two assets influence the end game.

Yves Smith's place is one of my favorite places, along with Calculated Risk, for smart commentary of economic issues. Today there is an interesting bit on the idea that just maybe there is a chance that the historical practice of defaulting on sovereign debt by countries has not ended ... and the next major country that could be in trouble is this one. Quite sobering.

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