Wednesday, September 12, 2012

The Coming Global Default Binge: German Officials Raise US Debt Concerns

German officials say that they are worried over US debt levels

From Reuters.

German Finance Minister Wolfgang Schaeuble questioned on Tuesday how the United States could deal with its high levels of government debt after November's presidential election.

In a speech to the Bundestag lower house of parliament to open a debate on the 2013 German budget, Schaeuble said worries about U.S. debt were a burden for the global economy, hitting back at Washington which has criticized Europe for failing to get a grip on its own debt crisis.

In private, German officials often express concern about U.S. debt levels and the inability of politicians there to reach a consensus on how to reduce it, but Schaeuble's public remarks underscore the extent of the worries in Germany.

US debt levels have indeed been a major source of concern.

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But so has been the debt levels of Germany, the Eurozone, UK and Japan. This has mainly been driven by the insatiable spending appetite of these governments.

The worries by German politicians seem no more than an attempt to deflect on their domestic (regional) problems through pot calling the kettle black.(chart from Zero Hedge)

All of them will default in the fullness of time.

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