We’ll soon need a Sovereign Debt Restructuring Mechanism SDRM for most countries of the word. Especially for the “safe”

Sir, Chris Giles writes: “Three times in four weeks, BoE has opted to provide more economic stimulus” “The Bank of England is a dove with clipped wings” December 3.

And reading it, all stimuli had, one way or another, to do with facilitating governments to have easier access to credit so as to be able to run larger deficit spending schemes. It is truly scary stuff.

Add to that, that for the purpose of setting the capital requirements for banks, the sovereigns have been assigned a zero percent risk weight while those who most generate the strength of a sovereign, the private sector, have been assigned risk weights from 20 to 150 percent, and it should be clear to all that we are heading towards the mother of all sovereign debts crises… especially that of those sovereigns perceived as the safest.

@PerKurowski ©