Respected UBS economist George Magnus says sovereign debt default now presents a grave risk to the global economy:
The sustainability of sovereign debt hangs heavily over bond markets, and the prospects for economic and financial stability…
There is no peacetime precedent for the current speed and scale of public debt accumulation and it is difficult to assess the social tolerance for high debt levels, and for the pain of protracted fiscal restraint. In several European Union member states, the threshold has already been breached. The spectre of sovereign default, therefore, has returned to the rich world.
Barnaby Is Right 
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