Comments on: Chart of the day, sovereign precariousness edition http://blogs.reuters.com/felix-salmon/2013/11/02/chart-of-the-day-sovereign-precariousness-edition/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: plasmaj http://blogs.reuters.com/felix-salmon/2013/11/02/chart-of-the-day-sovereign-precariousness-edition/comment-page-1/#comment-48519 Sun, 03 Nov 2013 05:10:44 +0000 https://blogs.reuters.com/felix-salmon/?p=22698#comment-48519 This is not really the right analysis. A primary deficit can usually mostly be funded locally since the bulk of the expenditures are denominated in local currency. Reserves need to be sufficient to fulfill the demand of foreign exchange (imports, external debt). Fx reserves do not represent the money that the government can go to to fund its local deficits.

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By: zipflash http://blogs.reuters.com/felix-salmon/2013/11/02/chart-of-the-day-sovereign-precariousness-edition/comment-page-1/#comment-48517 Sat, 02 Nov 2013 16:47:41 +0000 https://blogs.reuters.com/felix-salmon/?p=22698#comment-48517 Perhaps you hesitated to say it explicitly, but only one country on your graph meets 3 criteria for delivering a shock: (i) very low hang time, (ii) cannot borrow in its own currency, and (iii) big enough to destabilize the global system.

That country is France.

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