Greece has no choice but to rape itself because they cannot devalue their currency, since it’s not really their own (euro). Essentially, they have no control over monetary policy. Their choices are simple: default or implement severe spending cuts, which will most certainly lead to gripping deflation. As such, the deflation cycle will increase the debt burden. The most likely scenario, in my opinion, is Greece dropping the Euro and printing away like a little midget Bernanke.
The larger issue is Spain. Once the vultures get through with Greece, Portugal and Ireland, they will fuck with Spain, who represents 10% of the EU’s GDP. This is where the EU game will end, unless Santa Claus gifts that shit bag of a continent with free gold bricks and shit. Do you think Germany and France will finance Spain to the tune of $500 billion, if need be? PFFFFFFFFFFFFFFFFFFFFF
That’s as funny as a margin call on Christmas.
Let’s be honest, these sovereign debt issues are really bank issues, dressed up in fancy suits and ties. By bailing out Greece, the IMF is saving French and German banks. Who do they think they are kidding?
Recent IMF bailouts include: Latvia, Lithuania, Hungary, Romania: all fucked. Done.
So, my question to you is: once we get done with burning the EU down, will the financial arsonists target US municipalities? Like members of the EU, states cannot print money. So, like Greece, they need to default or make draconian spending cuts, which, once again, is incredibly deflationary. States that have severe debt issues include: New Jersey, California, Connecticut, New York and Illinois.
The likelihood of the Federal government letting any of those states default is minimal. So, with that in mind, we are heading for rapid inflation or deflation, of the most egregious kind. However, until that happens, the tenuous recovery might get clown raped by the events unraveling in the EU—all reasons to be very cautious with your investment objectives.If you enjoy the content at iBankCoin, please follow us on Twitter