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The Global Government Debt Bubble: Ireland Edition

Posted By Conn Carroll On February 18, 2009 @ 10:02 am In Ongoing Priorities | Comments Disabled

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Last month Heritage fellow J.D. foster wrote [1]:

The global recession has caused deficits to balloon almost everywhere, and governments worldwide are considering their own massive programs to stimulate their economies. So the United States will be offering this great wave of federal debt to the credit markets while most other countries will be doing the same. Because interest rates are set on global markets, this even larger global wave of government debt is likely to have much greater interest rate effects than would be the case if the United States were acting alone.

Last week the Guardian [2] reported:

Fears are growing that Ireland could default on its national debt after the cost to insure against possible losses on loans to the country rose to record highs at the end of last week.

Credit ratings agency Moody’s recently followed rival Standard & Poor’s in warning it might downgrade Irish debt, amid fears that one of Europe’s former success stories is falling into a deepening recession.

The Global Government Debt Bubble [1] is coming. And $3.27 trillion in new deficit spending [3] doesn’t help.


Article printed from The Foundry: Conservative Policy News from The Heritage Foundation: http://blog.heritage.org

URL to article: http://blog.heritage.org/2009/02/18/the-global-government-debt-bubble-ireland-edition/

URLs in this post:

[1] wrote: http://www.heritage.org/Research/Economy/wm2257.cfm

[2] Guardian: http://www.guardian.co.uk/world/2009/feb/16/ireland-debt-recession

[3] $3.27 trillion in new deficit spending: http://www.foundry.org/2009/02/12/true-cost-of-stimulus-327-trillion/

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