SOS Kick the can down the road

End of the noble grand experiment for EU in the making? No, if they continue to kick the can down the road.

Greeks will not change, period. Unless significant change in population. German is more worried than Greek because of the risk of getting out of Euro.

It takes 3.3% GDP to have a stable employment, and 2% GDP going forward, the unemployment will get worst and worst in USA.

Gary Shillings prefers US Treasuries and US Dollar. Commodities is falling and it will be a hard landing for China.


MyView

One may delay the eventuality, but it will come back to haunt you later. There is a Chinese saying, a paper cannot be wrapped around fire, eventually the truth will prevail. The above chart shows the world in M3+credit which has reached its zenith, the age of deleveraging will cause deflation.

Toxic debt is about US65Trillion, unfunded social securities and medicare is US300 Trillion, derivatives outstanding is USD600 Trillion. World GDP is about US60 Trillion. It is very unlikely the world can take on anymore debt significantly as the toxic debt will implode faster than the new credit created.