We are likely worse than PIGS, and so is UK/Japan. But we all
can print, and we do. Xept Re bubble states, of course. Those
are now in BIG trouble. Yields are held down by printing. Just
imagine if they soar, which is NOT a remote possibility. -ng-
Europe is going SHTF/austerity route. I guess we go
SHTF/austerity/printing route. The outcome for the markets
is instability, namely, simply unclear what they will do
on a fundamental basis, as Banana Republic forces battle
debt defaults. Don't count on sharply soaring yields because
we WILL print. That will just extend the time for us being
in economic chit, but will not cure it. This is like drugs
to a junkie, just eliminates withdrawals. In fact, if we keep
printing and don't do the required painful shock therapy
to clear financial/government corruption, it could extend that
time indefinitely! In other words, we'll be in chit for
a loong loong time -NG-
On an optimistic note, it is possible that we will eventually
go through this mess and recover, but that is not clear
at the moment, since this mess will last at least a few more
years if not a decade. |
