Mercogliano True Blog

 War and sovereign debt are merging in a vicious cycle that will determine which nations survive the next currency crisis. Governments have entered the conflicts in Ukraine and Iran, as well as the escalating conflict between the United States and China, already burdened by debt accumulated through decades of fiscal incompetence. They are now increasing military spending, subsidizing domestic industries, restructuring supply chains, and borrowing further to prepare for conflicts their own foreign policies have helped create. The United States, China, France, the United Kingdom, and Japan already have gross public debt that exceeds their entire annual gross domestic product. Russia has drained much of its sovereign wealth fund to finance the war in Ukraine, while Western governments have frozen approximately $300 billion in Russian sovereign assets. The Gulf states are being forced to increase defense spending due to the conflict with Iran, and Europe has pledged to increase NATO-re...