"As with some other major AAA-rated sovereigns, unless off-setting measures were adopted, the capacity of UK public finances to absorb adverse economic and financial shocks that would result in yet higher public debt while retaining its 'AAA' status has largely been exhausted," it said.
But one of the big developments of 2014 will be the growing peasants' revolt against the sovereigns of cyberspace.
But the prize goes to Adrian Wooldridge for foretelling a "tech-lash", a peasants' revolt against the sovereigns of cyberspace.
America's Volcker rule would exempt that country's debt, but not that of other sovereigns, from restrictions on banks' proprietary trading.In retrospect, much of the rise in cross-border lending was foolish.
That perked markets up since it promised to sever the link between weak banks and weak sovereigns.
Leverage may enlarge the size of the fund, but it can also concentrate greater risk onto the sovereigns that guarantee it.
The aim is to stop crippled banks and weak sovereigns from pulling each other down by creating European bodies to oversee the banks and deal with those that go bust.
Instead of providing liquidity indirectly to banks, the ECB could declare that it stands fully behind solvent sovereigns, just as the Fed stands behind the America government.
Weak banks weaken sovereigns that are called upon to bail them out; weak sovereigns impair banks that hold their bonds.
Poor growth enfeebles both the sovereigns and the banks.
But for a variety of regulatory and cultural reasons, banks loaded up on sovereign debt from all the euro-zone countries, treating it all as if it were risk free, and yields on the debt of southern sovereigns converged toward northern rates.
