Peak Debt is in essence the point at which a sovereign nation reaches its maximum indebtedness and cannot afford to service the debt anymore, thus prompting a reduction in the debt (principal).
So, Europe proved yesterday with the uplift of the EFSF (European Financial Stability Fund) from its current base of €440bn to €1tr (boosting it by 127%), that it certainly has nowhere nearly reached European Peak Debt.
Well, as long as the Capital Markets buy this solution, can make a profit and move on to the next wave of Debt delusion, who are we mere citizens and commentators to criticise the massive instability Big Government and a BIGGER EU causes?
We argued back in 2009 that you cannot solve a “debt crisis with more debt” and this sentiment still rings true today. So when will they ever learn?
Yours forever indebted,
theMark(debt)etSoul ©2011
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