From the summary--

Sovereign Debt Problems in Advanced Industrial Countries

 Most advanced industrial countries in worst ever peacetime fiscal shape
 Sovereign default can become the least bad solution for a country
 Sovereign default risk outside Greece low but non-negligible
 Most countries will eventually choose a ‘fiscal pain’ solution
 Debt restructuring, possibly with haircuts, likely to be part of the ‘fiscal pain’ package
 Inflationary solution to public debt burden highly unlikely in Europe, unlikely in US
 Euro Area needs mutual fiscal insurance mechanism to survive and prosper
 Restoring fiscal balance will be a drag on growth for years to come for advanced industrial countries

The whole thing (a 68 page pdf) is here.

Filed under: * Culture-Watch • Globalization • * Economics, Politics • Economy • The U.S. Government • Budget • The National Deficit • Politics in General • * International News & Commentary • America/U.S.A. • Europe

1. Ad Orientem wrote: For an alternative point of view I would suggest reading this article.  Like the linked PDF above it is rather long, but well worth the read.  It is also quite sobering if not actually frightening. April 30, 12:49 am | [comment link]

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