The financial market volatility induced by the political dramas...

The financial market volatility induced by the political dramas in France highlight that we are likely moving into a new regime where the risk of sovereign debt crises comes back into frame.This is a clear extension of the fiscal dominance problems outlined in this column last week. That is, a situation whereby the inflation crisis, which started in 2020, is prolonged by the political propensity to spend vast amounts of public money in the name of myopically buying votes.

Biden, Chalmers, and other parts of left-wing Europe are all screwed because of mountainous debt piling on by the day. All govts are hooked on public spending to buy votes. Its a disaster waiting to happen. This govt is overspending and showing no signs of slowing down. Inflation is embedded in Oz with these high energy prices and clueless wingnuts running the place. They think money grows on trees. Rather than cut spending and the size of govt, they import more people. raise taxes, increase the size of govt, and keep spending. $500m on the voice and the NDIS, subs, and higher wages to compensate for their self-induced inflation. People have spent a lifetime of earnings trying to climb on the property ladder.
Gold stocks are going to move this year. Govts worldwide are a threat to everyone the way they are carrying on.