Daily Wisdom: Is Britain Bankrupt? Edition

Bank declares recession over
Bank of Canada forecasting economic growth of 1.3 per cent on an annualized basis in the third quarter

Commodities investing is back in fashion
Expect volatility to remain a key factor in prices throughout the rest of the year, says Deutsche’s Asia head of commodities, but look for growth in the carbon credit market and freight futures.

For 300 years our best minds have fretted over the threat of national bankruptcy. As government debt surges upwards, they are doing so again. How worried should we be? Is Britain bust?

Recovery risk for government borrowing Whenever I find myself in any gathering of bankers, business people or politicians, the question they ask more than any other is whether the government will be able to borrow all it needs from markets – or whether at some point big investors will lose their appetite for gilt-edged stock, the exchequer’s IOUs.

US Vice President Joe Biden is now telling citizens that the government has to spend an added fortune on healthcare to avoid going bankrupt. When it is already running a US$2 trillion deficit? At least he seems to know that he sounds ridiculous. Biden, oh Biden!

Leave a Reply

Your email address will not be published. Required fields are marked *