What’s wrong with this scenario as the August 2 deadline approaches ever nearer when the United States is supposed to raise its debt limit or default on its bonds for the first time in history? Ward McCarthy, a British financial advisor hints at it, “It would be the end of financial markets as we know them now.”
That doesn’t say enough. Really it would be the beginning of America’s decline. That would signal the build up to another world war, World War III. Hitler didn’t win the last war. Nor did the Kaiser win the war before that. Germany is tied up in our political system and our world hegemony. If we went down, they would go down with us despite their conservative bunds.
So the move by investors to buy bunds up is really a “feel good thing”. It doesn’t mean much except that maybe the United States should hire German advisers to run their treasury department.