Continuing with my previous macro post, that I’m quite sure no one cares about. I would like to continue with what I believe to be WW3. I mean to say that world governments have embarked on a war against free markets. This is a war that began decades ago and is soon to reach a pinnacle.

Free markets would see a dramatic wealth transfer from the developed world that produces little, to the emerging world that produces plenty. Wages that are to high in the US, would fall. While wages that are to low in China, would rise. Free markets would do a lot of scary shit, yet world governments are more then happy interfering. Creating a false sense of security on the surface, while creating unintended instability beneath.

It’s all a complete joke. The more I think about it, the more I want to train for the UFC, so I may defend myself when the world falls apart. The more I think about it, I need guns. Lots of guns.

The only bright side to this story, is in the fact that if you think rationally you can make a shitload of money, that is before the world blows up. Free markets will prevail, it’s only a matter of time. The only question is what battles will world governments lose first?

I would like to say, the EU. The only problem, is it seems to me the chance to make significant money has already been passed. Possibly, buying equities AFTER a EU breakup may prove rewarding(Senior debt would be the safer bet). After all, if the EU were to breakup(seems an inevitability to me) I’m quite sure they would be individually printing money to bail out everything.(Nationalization may throw a wrench in this otherwise glorious plan)

I believe China is absolutely fucked. However, I’m going to completely skip talking about them. Long term, they will be okay. Short term, it doesn’t look good.

In my eyes, Japan will soon lose the battle against free market forces. They have a serious debt problem and there are only three ways out of debt. Tax more, spend less or print money (Forget about growing, it doesn’t happen). Every single road leads to one thing, a lower Yen. I can’t help but laugh at the recent Japanese intervention. What a joke.

FYI, I still have my RY short. Also if you’re a fan of Nassim Nicholas Taleb, I recommend reading this.

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