Argentina has bluntly stated it cannot make the next bond payment. The exist fees being attacked to long-bond funds is also the realization that our models are spot on. I am off to urgent meetings in Europe. All I can say is our phone has been red-hot. Equities are rapidly becoming the new international gold and safe-haven. This adds to the trend of Austria declaring it never guaranteed the debt and France announcing 60% of their debt is illegal.
To all those sending emails on this subject and can it be stopped, the answer is of course, if there were no politicians. But this is Adam Smith in real life. They will only turn to our solutions WHEN there is no other choice. It would be against human nature for these people to say yes, you are right, let’s do something now. They will cling to power to their last dying breath. Fine, I would do whatever I can, but it is just not time. They have to bleed out of every possible orifice before they will ever yield. I truly wish I was wrong. But this is NOT my opinion – it is simply the fact of history. They will NEVER do the right thing for the country when they hold the power. They will blame the people and seize more power because that is always the answer to them.
DEBT has always been the Great Destroyer of Civilization. It is the opium of governments since the dawn of time. Government is just incapable of managing the economy and socialists like Pickitty just covet the wealth of everyone else. They alway assume they have a right to the labor of everyone else and there is never any discussion to the contrary.