Debt is being financed by European bankers running scared out of Europe.
We saw the Belgium govt collapse.
We saw Eastern Europe demoralised
We are seeing the sovereignty risk of Ukraine & Russia in terms of Credit Default swaps soaring.
Credit spreads from 75% of EU nations with German Bunds are rising out of control.
There is absolutely no turn around in the Baltics.
The Germans are depressed and miserable.
The English just don't know what hit them, they are still dreaming of their lost empire.
The US got us all in this mess, they are the only ones that will get us out of it. Demand for USD is not a furphy, it's real because it's liquid. If you see the monthly chart of the USD and its cycle and the consolidation you can not help but be bullish. The USD is not bearish one iota...overbought yes, but will break its 1985 highs.
It's debt is no worse than France, Italy, Germany and Belgium in terms of GDP per capita. They are all over 100% of debt of GDP themselves and getting worse.
The FED is the only pro active outfit and repatriations of super funds back to US deposits has not stopped any time soon which will continue to act as a capital inflow for a long time to come. That money sitting in the bank earning their 1% interest is 'safe'...and that's all that matters.
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