Thursday, 15 September 2011


(Wahnhaft is German for delusional)

How delusional? The flapping gums in the Euro crack-den deem that Greece WILL NOT default.

Really? Lets look at loaning money to Greece over one year. Their one year GOVERNMENT bond.

A 141% return over one year? As an investor I would say there is no fucking way any institution can pay 141% over one year, particularly one run by corrupt muppets.

Oh no, its all good says the pump-and-dump talking heads. If YOU think Greece can meet THOSE obligations you are a fool. A default on debt is a matter of time.

But Greece has to stay on an Austerity path whilst growing its economy. Austerity AND growing? Austerity is working to great effect. Greek economy shrinks by 7.3%

Slashing spending, laying off workers and increasing taxes whilst trying to expand the economy. Thats a bit like trying to run up the down escalator.

Everything is ticketyboo.

Excerpts From EU Report Stating Euro Crisis Contagion Has Spread And Is Now Systemic

Deposit Flight at European Banks Means Risk Piling Up at ECB

Sarkozy, Merkel "Convinced" Greece will Remain in Eurozone; Market Convinced of Default; Gold Declines US Dollar Drops; Band-Aids and Rubber-Bands

Either Merkel and Sarkozy are attempting to buy time, hoping beyond hope to preserve their failing legacies, or are delusional.

I suggest a combination of the three.


Its a Blip/Buying Opportunity blah blah blah

A Canuckistanian, Dave Rosenberg is very good is generally and on the money. I can't post his blurb direct for copyright but read the guts here:

David Rosenberg: "It's Time To Start Calling This For What It Is: A Modern Day Depression"

Please note: The French banks ARE NOT bankrupt, they just need to 'raise capital'.


Gold at 10K? NO WAY!!

That can't be right. I know paper money was initially introduced to save folks lugging sacks of gold to business transactions as well as a sword, it (was) a promissary note underpinned by some tangible precious metal. Flicked by Nixon so he could print to pay for Losing War No1 (Vietnam) (have the Americans EVER won since Pax Americana?). But, what if we went back to backing paper money by gold(?)... The market for honesty: Gold at $10,000

When The Dow was 850ish in 1980 and someone told me it was going to go 1,450% in 20 years  to 11,000 in year 2000, I would have laughed.

Or 1,750% in 2007 AFTER the crash, all money printed and backed by nothing other than spin.

Hmmm, $10K Gold is ONLY 1,300% over 31 years.

Interesting times.

1 comment:

  1. That kid's shirt was always my fervent hope and when the Gods did smile, actuality, in younger days (well, even now, but I'm more realistic).

    Great links, thanks. The gold 10,000 story made me recall a really interesting TBP post by analysis/trading co based around the idea that collapse in financial markets would occur, relative chaos for brief period, USD quickly re-established by pegging to gold at $10,000. Did link at MB twice (two separate reports) and will try to relocate and link here. Keep up the good work.