Saw this article and couldn't help but recognize some of the correlation between defaults and historical markers.
This article picks up on it and discusses it in context of what caused the last major western default: 1933 Nazi Germany. There have been others since of course, but this was 20 years after the world's 3rd largest economy went to war, and lost.
There is something to be said about trying to gaze into the crystal ball by looking into our past. Sometimes though it only helps so much, and fails to display the gravity of the situation. Not since the fall of Rome has something this major been at risk, and even that only affected a seemingly small portion of the globe. Only the most isolated and hermitized members of our species are immune from this should it happen, since we are all connected via the economic interdependence deemed worthwhile by globalization.
The biggest question right now is are we solvent, or capable of eventually paying back our debts. In this article the statement is made that we are, which is true on paper. In reality though, when you introduce the human element of who we are as a society to the equation, it becomes blatantly clear that we are no more solvent than a child in a candy store begging their mother for another candy bar.
This week tells a lot about us as a race, and what comes next tells us about what our future will be. Buckle up everyone, this is going to be interesting.
[link to www.bloomberg.com