Sovereign Debt Crisis
The doomsday events now unfolding in the Eurozone are in line with the prediction in my book, GLOBAL ECONOMIC FORECAST 2010-2015: RECESSION INTO DEPRESSION (available from the homepage of this website, and on Amazon.com in hard copy or Kindle download).
My forecast is that a profound sovereign debt crisis will mark a far more dangerous phase in the global economic crisis, sparking a synchronized global depression. This weekend, the Eurozone political leaders and the European Central Bank are conducting emergency consultations, boasting that they will unleash some sort of “surprise” by the time Monday financial markets are open.
When politicians such as Nicolas Sarkozy, president of France, boasts about taking on the speculators while the fiscal edifice of Europe crumbles beneath their feet, I am not exactly reassured that these politicos know what they are doing, or comprehend the turbulent economic and financial forces that have been unleashed by their reckless fiscal mismanagement.
Beware, this is not a European problem. It is merely another marker of a profound systemic crisis afflicting the entire global economy. The sovereign debt crisis may be emerging with radical force in the Eurozone first, however the UK, Japan and the United States are the next dominos that will ultimately fall as destructive financial and economic forces beyond today’s clique of mediocre politicians capacity to control let alone comprehend gain velocity.