Below is just part of the article questioning whether or not the crisis of sovereign debt is over. Sadly, and as I have been saying for 2 years, it is not. It is merely beginning. It will end with fiat currency crises, ultimately here in the US. These are not "contagious", but already inevitable. It is only a matter of realization by the sheeple.
"Some countries have experienced sovereign debt crises, for example Greece. Is this kind of phenomenon over? Now it seems that it's not so simple," Wen said. "The sovereign debt crisis in some European countries may drag down Europe's economic recovery.
He added it was too early to wind down stimulus deployed during the 2007-2009 financial crisis.
Governments around the world ran up record debts during the $5 trillion effort to pull the economy out of its deepest slump since the Great Depression and now face a tough balancing act: how to reduce debt without choking off growth.
ECB Governing Council Member Mario Draghi warned that austerity programs by European governments could snuff out a fragile recovery unless they were coordinated internationally.
Economic sentiment in the euro zone fell in May, defying analysts expectations of a slight improvement, in part due to the wave of austerity announcements.
However, ECB President Jean-Claude Trichet said the economy may expand more than expected in the second quarter.
The fact that not just fiscally weak southern European countries, but also nations such as France and Germany at the euro zone's core are under pressure to cut debt and deficits amassed during the financial crisis, is adding to concerns.
Recent Comments