For those interested the article below is short and quite interesting.
It is about Government debt default and how they have got around it before..
Posted by DUB on the economics forum.
Do you have Government TBonds??
Sovereign Debts: How Defaults May Unfold
Posted on September 18, 2015 by Martin Armstrong
In the Middle East, the banks are trying to convince the Gulf States to begin issuing debt even if there is no need to borrow, simply so they have a market to trade. Governments should never listen to bankers for this always becomes a conflict of interest with respect to national debts. The sooner government wakes up to the Sovereign Debt Crisis, the soon their particular country will be saved.
The Italian government engaged in a mandatory debt conversion, known as “conversione forzosa” during 1926, which they would again impose during 1934. They forced debt holders to extend their debt by lengthening the maturity. This seriously impacted the full faith and trust in the Italian government. During the post-1926 years and then again after 1934, the mandatory conversione forzosa effectively was seen as a partial default by the government, which made it extremely difficult and costly to borrow on a short-term basis thereafter.
http://www.armstrongeconomics.com/archives/37216
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