The Price of Gold and Debt
Donald Ingram submits:
The U.S. private sector corporate debt, mainly held in risky junk bonds at approximately $1.4 trillion, is facing the daunting task of being repaid or rolled over. Loans that were made during 2005/2007 and that are now coming due. The main problem being the underlying asset collateral has no, or vastly reduced, perceived value except in the minds of those who are continuing the fantasy of mark to make believe.
Compounding this looming problem is the added sovereign debt at risk, starting with Iceland in 2008, then moving to Latvia, Ireland, Dubai in 2009, and now Greece. This wave is now rolling over Spain, Portugal, United Kingdom and continues west to a number of States within the U.S., eventually reaching Japan and the U.S. federal government.
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