One for the Road

How the Great Fiscal Debt Binge will cause 'real' sovereign default, compress interest rates, inflation & real growth, punish savers & creditors and reward investors making bold bets.

Chronic deficit spending and massive increases in public debt levels is a key ingredient to economic process in the era we live in and it constantly seems to outpace expectations. This has huge implications on the real economy, the pricing of assets and wealth distribution in our society. Everyone knows it sort of. But I often get the impression the tru…