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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 387.98+1.3%Nov 28 4:00 PM EST

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To: THE ANT who wrote (89843)5/8/2012 4:22:51 AM
From: elmatador  Read Replies (1) of 218074
 
World enters Phase 3. The decisive one. scenario TJ never spelled out but foretold

First phase was throw money at the problem.
Second Phase was wait to see what happens with problem.
Phase 3 problem comes and there is nothing that can keep it at bay.

No amount of free capital and no matter how low interest rates can move the economy.

What is the scenario that TJ never spelled out but foretold?

Populaces -mainly middle classes- seeing they no longer can be saved turn into their politicos.

Europe go to extremes voters are increasingly turning to radical parties of the left and right in an outright rejection of the eurozone's austerity program.

Germany wants to be the left man standing in Europe.
We don't want growth through new debts. Instead, we want growth through structural reforms." says the chancellor spokesman.

If you reject austerity you choose default. Argentina showed that when they chose Cavallo and rejected Murphy in June 2001.

See topics re-argentinization, desdolarization and the debacle that followed.

Economic implosion is followed by social explosion.

Europe has not turned into an Argentina yet. Europeans cannot exchange their Euros into something they can hold.

Yes they exchanged into CHF but overwhelm the capacity of Switzerland to absorb them. Argentina -which is a smaller scale than Europe- just sent their dollar in capital flight.
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