Ponzi Scheme in Peril: Bond Vigilantes up the Ante on Sovereign Debt

December 2011 issue View a complete explanation of the Kondratieff Wave theory Look no further than the recent buyer’s strike of German bonds to see that this economic winter has entered a new stage. On Wednesday there were just no takers for nearly 40% of the bonds offered by the most creditworthy country in Europe so the Bundesbank had to step in to fill the gap and monetize their own debt. This bond auction was nothing less than a spectacular failure, the first I can ever recall in a major

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