Hi Maurice, <<Americans will work into their old age to repay their loans>> Doing what? No they will not. They will default and brave through the consequences, by democratic consensus and military might, just like the samuri did with their land-owning creditors employers.
Argentina defaulted, and is braving through the consequences by democratic consensus and big dangling balls. Japan government will do the same, just like Enron. Each time, every episode, the plot is the same.
<<Aztec metal is of course wealth>> thus making Aztec metal king of the cash hill.
<<provided people continue to chant their mystical incantations over it (gold)>> ... they have been doing it for 4000 years, and no reason to change.
<<Sure, they are doing okay at the moment [although the gold price trend for 20 years has reduced their lustre]>> and so the bottom must be in:0)
<<I notice that I now have a stack of cash [in the form of US$ and Kiwi$] so I guess you have persuaded me more that a great recovery is not immediately around the corner>> ...
Feels good, no:0? I guess not, because no interest income. FED will not dare to raise rate, just as Bill Gross said, but exogenous events may not be nearly as kind.
I just returned from dinner with friends and now all feel we are in the soup for 3-5 years, if we are lucky. One informs me JPM Chase will announce a 30% layoff around the world within weeks. I am not clear on whether the 30% is only related to investment banking and corporate finance, or for the whole company. We will soon know.
Chugs, Jay |
