by Martin D. Weiss, Ph.D. 02-22-10
If you thought Wall Street’s debt crisis was traumatic, wait till you the see the consequences of Washington’s debt crisis!
Never before in history has a world power like the U.S. been so utterly buried in debt! And never before has that debt been financed so massively by foreign investors!
Nineteenth century Mexico, Spain, and Argentina accumulated so much debt, they were forced to default.
In the 20th century, a similar fate befell Germany (1932) … China (1939) … Turkey (1978) … Mexico again in 1982 … Brazil and the Philippines (1983) … South Africa in 1985 … plus Russia and Pakistan in 1998.
Argentina kicked off the 21st century with a default in 2001. And barring a euro zone rescue, Greece, Spain, and Portugal are prime candidates for debt defaults this year.
But in NONE of these examples did we — or do we — see the debt crisis striking a dominant world power! In ALL cases, the debts represent little more than a small fraction of the total debts outstanding worldwide.
Not so in our case today! FULL STORY