My predication:
* Euro will be dissolved or will at least kick out the cheaters, free loaders and parasites like Greece. In any case, it would depreciate a lot compared to gold.
* After that, default is not a bad answer.
* The lesson of having a good life without working hard is learned again and again. First it is Ireland, then Greece, then Spain/Italy.
* Another lesson is living off from the treasures/commodities they stole in their colonial days is long, long over.
* EU will be a problem for years to come. When the country has that high debt with regard to GNP, they will not be competitive except sending their citizens to be slaves to work for other countries.
I can hire some to clean my house, cook for me, dance for me and take care of my grand children if the wage is right as long as they're not lazy and cheaters from their bad culture.
* Decoupling is the solution. US and China will not be stupid or big enough to rescue a sinking ship.
* There will be conflicts in the citizens in Greece between those who have (still a lot collecting over $40K USD pension) and those who have to suffer due to passing the debts/miseries to them.
(c) TonyP4 2011. Written in 11/3/11. Updated 11/3/11.
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Disclaimer: All my posts are for informational purposes only. I'm not a professional investment counselor. Seek one before you make any investment decision.
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Russia's breakup could be due to the huge deficit. Their major money makers are not doing good at the time: low oil prices and commodities. They could not afford to aid his allies, compete with US in military might and fight the Afgan. war. Sounds familiarized to us.
ReplyDeleteWhere ever there is one part of the country making more money than another, and/or they're having different dedicated religions, breakups are common.
We'll trade with headlines until EU has a solution - could be 6 months away. It is hard to convince the lazy Greeks to work for 40 hours a week. Default is a good option for them to wake them up and face reality.
We've been talking about the EU's mess for over a year and there is not much change.