Chris White

Are We Facing a New Wave of Sovereign Bond Defaults?

Thank you for these thoughts. The preservation of value is an interesting question. It might be interesting to compare the U.S. present circumstance with other Third World precedents. Would not the application of the medicine the US and international institutions insisted was necessary to restructure third world debtors be an option for the US's international lenders now? It might be, for example, that the current US situation could usefully be compared with Mexico in 1982 from the standpoint of capital flight, currency over-valuation, endebtedness. The ratios of values in Mexico before and after the devaluation and restructuring of 1982 might provide a better indicator of what's ahead than comparisons with the stag-flation of the 1970's when the US economy was very different than it is now.