The implications of the present situation in Spain could be more far reaching than is currently anticipated and the contagion it represents could lead to a fundamental change in the world’s monetary order.
If the BRICS countries continue to develop in the present trajectories, I believe that in five or ten years they will have the ability to fund their bank at levels that could challenge Western institutions.
One particularly pernicious aspect of the Greek settlement was the declaration that the European Central Bank (ECB) deemed itself to be ‘senior’ to all other bondholders and was thusly able to recoup all its invested principal.
It should not be ignored that, in a possibly tight election this fall, a «wag the dog» scenario with Iran is not beyond the realm of possibility.
If one assumes as I do that no leader on either side of the Atlantic has the courage to face the music, then there can be little reason for optimism in 2012.
The argument for the dollar and against gold is simplistic, and I will evaluate it against the four-stage collapse I see ahead for the Western currencies.
When the Greek referendum looked like a possibility, a thinly disguised panic erupted along the corridors of power in Europe.
The rioting in Greece indicates that there may be massive voter enthusiasm for a solution along the lines of what occurred in Iceland.
It is just a matter of time before these possibly catastrophic debt chasms erupt into full view.
The activism of Merkel and Sarkozy should come as no surprise. French and German banks are the largest holders of Greek debt.
It seems that the German court has fixed the country on the track of establishing an economic über-empire.
Keep your eye on German legal news. It may make more impact on your portfolio than you ever could have imagined.