Posted Mar 30, 2015 by Martin Armstrong
COMMENT: Mr. Armstrong, Your solution is unbelievable. Greece’s debt is selling at a huge discount from face just like Mexico in 1986. If we follow your model, this would reverse everything. I agree opening this up for all holders of debt rather than exclusively domestic as they did in Eastern Europe would entice major new investment. My bet China would be buying up Greek debt if it converts to hard assets. That is from the dealing desk view. It would then put political pressure back on Europe and that will force change in the USA. You are correct. It becomes a contagion for the better.
REPLY: Absolutely. Even the German hyperinflation ended how? When a new currency was issued backed by tangible assets being real estate! Bahamas was the last group of islands to expand the tourist trade because they had a law that you needed a domestic partner. If there was nobody there with money, nobody could build a hotel. We must respect international capital flows.
Those in the industry see this instantly. Our problem is opening the eyes of the rest of the world as to how things really function. The politicians will be the last to respond. But they will respond quickly when you crash and burn.