I have been saying for more than 10 years that the next financial crisis would be a sovereign debt crisis.

That's where the bubble had been building. That's what legacy finance sold as a "safe haven" using the same words that they had used for real estate before 2008. "It never defaults" "It cannot go down" "It's always safe", etc, etc...

That's what all regulated institutions were forced to have in their portfolios and sell to their clients. That's what MiFID and other regulations considered "safe" and therefore heavily incentivised. Sovereign debt is where the newly printed stimulus money has flowed more directly. When Draghi launched his "whatever it takes" those flows went straight into sov. bonds.

But most importantly, the amount accumulated in sovereign debt is just too large to pay. It's too large to even pay the interest!

I cannot know WHEN the next crisis will start, but I would bet that this is WHERE.

The impact will of course affect not just bonds but also stocks and other markets. The policy response will most likely be inflationary.

The best insurance against this will be #Bitcoin.