Dear Mr Armstrong,
Please could you elaborate on your post: “Consolidating all the debt in the EU”
Of course you were correct and if these brain dead idiots had listened to you they would not be in this mess but surely the EU exploding with a sovereign debt crisis is right on schedule with your big bang 2015.75?
Surely this is the 100% on the cards now regardless of what they do because as you said your computer takes out humans ability to evolve the wheels are surely in motion? Or am I wrong?
Or have you posted that because it shows that although they snubbed your idea in the 90’s now they will try to do what you said but this will be futile?
If you get a chance to answer as always i really appreciate it.
ANSWER: Consolidating the debt to prevent a Greek default is now under consideration. Those at the top assumed they could ignore Greece, and if they exited, no big deal. This is typical of someone who is in power and views the world is at their command. Those in the markets have questioned what they are smoking in Brussels. Any trader with any experience knows a Greek Exit will start a contagion.
When the commission forming the Euro came to us originally back in 1997, that crew understood the point about consolidating the debt. They did not snub the idea. They merely responded that the people of Europe would not vote for that, as they would then see it as a bailout for Greece back in 1997. The commission told me they would adopt a two-phase approach:
- Get the currency
- Consolidate the debts
Naturally, creating the currency first provided the the power to create a bureaucracy, and then handle the debt afterwards. The problem occurred when these people left, as the new crew, who were now pure politicians, never heard of phase two. This has been my criticism.
The crisis facing Europe is simply that those in power have ZERO experience in the markets, and being lawyers, they assume the answer is to write a law to dictate the result. They fail to grasp that no law will ever alter human nature. It can suppress it for a while, even cause people to become addicted to government with the Roman model of free food and circuses, but the core traits will always remain intact.
Consequently, the governments are heading in the direction of authoritarianism for they see the world only through the rose-colored glasses of their own power. This now is the NEGATIVE interest rate concept and increased taxation trend which requires the elimination of physical money to sustain their power looking at only their fiefdom in isolation. They are more than likely going to attempt this unilaterally and then impose capital controls to try to prevent the flight of money from Europe. It will fail and we are headed into a chaotic period that may result in revolution.