Niall Ferguson of Harvard University spoke with Bloomberg Television on the subject of bond markets and the threat of a speculative bond attack against the United States.
0:35 Ferguson discusses “bond vigilantes”.
1:35 No country in history has been able to grow enough to meet it’s debt obligations, except for England in the early 1800s, which had a massive empire and was going through the industrial revolution.
2:10 It would be more reassuring to see some inflation now, without inflation default seems the only way for the US government to get out of this quandary. Default now seems the only escape, and the U.S. 3:00 Nothing would scare investors more than if the Government adapted Paul Krugman’s recommendations of having more stimulus.