There's no way the G7 will opt for credit destruction and pay off debts. Jacked taxes, a rapidly shrinking monetary base, all during tepid recovery spell a gigantic deflationary crash on this inflation-addicted economy, just as the boomers retire and cash out from a bankrupt medicare and Social Security?? Not gonna happen. Even though it's the only workable solution to this disaster, politically, it's suicide. Voters simply won't have it. The only alternative is to print. Inflate the debt away and turn fiat paper into confetti. This is it. Canada, America, UK, Germany, France, Spain, Portugal, Japan. Everyone. Done. China, India, and Brazil are the lifeboats. Low-to-no consumer debt. Highly industrialized. Private property rights held up by a strong Government/courts. Low-to-moderate regulation/taxes. I feel like I'm on the Titanic. Jim Rogers, Peter Schiff and Faber are right. What are they gonna do? This crisis could provide the subtext for a One World Currency. Nobody can pay, so the G7 fuck bond-holders, citizens get wiped out, and they devalue the conversion like the dollar was under Roosevelt (41%) to a new, unified currency. National debt resets to zero and Government power multiplies by 10.
Have you built a bomb shelter in your backyard yet? It must be tough living every day as if the world is going to come crashing down on you at any minute.
I think you completely underestimate what voters think, the administrations of these in-debt countries are barely in representation of the voters definitely so in America.
Jim Rogers has been saying the same thing about US debt since the 1980s. He even refers to it in Market Wizards. So I wouldn't say he was some genius, he's been wrong for 2 decades. Although I agree that the debt loads, etc, are excessive and theoretically everything Schiff and Rogers has said should occur, the market can be incredibly forgiving when it wants to. Japan has almost 200% GDP worth of external debt, while the US isn't yet at 100%. If the economy picks up at the end of this year, I have a feeling the world will be more than willing to extend it more credit. The only problem is that everyone has no where else to go, so there is incentive for them to look past the debt load.
Peter schiff might be right, but he is certainly a POS trader, do you know he still uses CRT screens in his office? that poor dote
Schiff said, "financial storm coming". He was right about that. He also said, "here's what to own to protect yourself from the storm". In retrospect, his choices were wrong about this part. Cash, gold, and bonds were correct... all else failed.
There's no way to avoid the crash regardless, it doesn't matter how much they use to bailout what they feel are 'key' industries or financial insitutions. In the end the shitstorm is coming and they will either learn from it or be swept away in a mass of angry mobs.