10 yr yields are now at 6%. Italy’s debt to GDP ratio is at least 125%, making them the third most indebted nation in the world. France has the most exposure to Italian debt, with more than 500 billion euros in worthless meatballs on their cheesy balance sheets (I know, that was good). The German’s are not stupid and know this is a fight for survival, literally.

If Italy goes, which it is as represented by 6% 10 yr yields, Spain is next. Listen to me ever so quietly, Germany is not going to backstop 3 trillion euros in Spanish and Italian debt. It is simply too big to save. There will have to be restructuring and the banks will likely trade to $00.00, all of them.

Naturally, before that happens, do-gooders will continue fighting the good fight, telling you that “everything is okay” and “this is manageable.” But they are speaking with forked tongues and fool no one but the weak minded simpleton.

All that aside, I am continuing to do research on my new food and beverage thesis. I am sick and tired of trying to catch the beta waves of stocks like CLF and DECK. It’s a suckers game. There is a whole segment of the market that is rising in a quiet, yet predictable fashion. I am interested in good free cash flow and decent growth.

The PIGS may fall; but people still need to eat and drink. Cliches are for corn can fucking asshats. However, in this case, I am only interested in protection of principal; therefore, I can say whatever the fuck I want to say, AND MORE.

UPDATE: I am allocating 20% of assets in TLT.