Morgan Stanley (NYSE:MS): Some Governments Will Default

As governments around the world refuse to cut back on their size and continue to embrace their socialists policies, the risk increases for governments to default on their debt, and according to Morgan Stanley (NYSE:MS), it's no longer if, it's going to be who and when.

It is amazing to see this unfold and be ignored by governments, as the inability to extract more money from the productive and redistribute it to the unproductive is bringing these countries down, and they fanatically hang onto their failed philosophies and economic voodoo based on socialist schemes which can no longer be supported.

Arnaud Mares, an executive director at Morgan Stanley, said this, “Governments will impose a loss on some of their stakeholders. The question is not whether they will renege on their promises, but rather upon which of their promises they will renege, and what form this default will take.”

Mares added, the sovereign debt crisis isn't just relegated to Europe, as it's a global phenomenon, “and it is not over.”

We at Commodity Surge have been amazed at the lack of coverage in the mainstream economic media, as after a few overtures and announcements from European leaders that the sovereign debt crisis was over, reporters ran for the doors to the next important financial story.

To even seriously think the crisis was over in Europe, let alone other nations of the world, after a few austerity moves, was naive at best. Even the selling of bonds in the market should have been taken largely with a grain of salt, as if decades of economic practices and mindsets can be changed by throwing money at the problem.

As in the United States and its stimulus spending, all it does is temporarily cover up the mess until the money runs out, and then it picks up again right away revealing the gasping economic patient who survives only because of the misguided attempt to maintain things as they are, even if they can't be afforded.

There is no answer but smaller government and people taking responsibility for their own lives through being productive. The game is up and the attempt to save socialism from complete collapse is nearing an end, as the great experiment is over, and it have totally failed.

How long government stubbornly hold to their promises will determine the depth of the carnage, as some simply can't believe their socialist theories and Keynesian practices are completely wrong.

They better start believing it, as the welfare of their people and survival as a nation are at stake.