Insolvent: "unable to pay debts owed"
Econo-dunces set the stage for this disaster when they included deficit spending in GDP. Every dollar borrowed (and spent) counted as income. WTF?
Central banks provide the liquidity and sovereign states provide the insolvency. The Idiocracy provides the asinine belief that they've stumbled upon the secret to effortless wealth - printing money. All of which would be causing hyperinflation right now, if the economy was not being dismembered at an ever-accelerating rate. Third World *Emerging Markets* want what we have and are willing to work for ten cents on the dollar to get it.
Nevertheless, Ponzi schemes end when someone wants their money back and there is not enough inbound liquidity to cover the capital call. The Madoff Moment.
We don't know which entity will start the domino chain of defaults, all we know is that it could be almost anywhere.