Martin Armstrong
Europe will fail and the only open question is "when?" They simply resist crating a real single currency and lacking trading experience, they just do not get it that I can still short currencies that no longer exist by shorting bonds issued by individual member states. Each currency was accepted according to the Free Market. Europe M U S T do this or die a slow death.
Europe has to swap the bonds of each member state according to the free market price. It will then swap and create a Eurobond. Each state retains its sovereignty and customs. Going forward, each state would then rise or fall according to its own debt credit rating. However, banks MAY NOT use new debt as reserves, ONLY the Eurobonds.
This is the ONLY structure that will survive. As a trader, the only play will be spreads. But if I sell Greece, I do NOT threaten the whole European Union. Just as it is in the United States, each state must clean its own house to get more money. It will NOT necessitate Germany bailing out Greece any more than the US Federal Government is compelled to support the debt in California.
Europe will fail and the only open question is "when?" They simply resist crating a real single currency and lacking trading experience, they just do not get it that I can still short currencies that no longer exist by shorting bonds issued by individual member states. Each currency was accepted according to the Free Market. Europe M U S T do this or die a slow death.
Europe has to swap the bonds of each member state according to the free market price. It will then swap and create a Eurobond. Each state retains its sovereignty and customs. Going forward, each state would then rise or fall according to its own debt credit rating. However, banks MAY NOT use new debt as reserves, ONLY the Eurobonds.
This is the ONLY structure that will survive. As a trader, the only play will be spreads. But if I sell Greece, I do NOT threaten the whole European Union. Just as it is in the United States, each state must clean its own house to get more money. It will NOT necessitate Germany bailing out Greece any more than the US Federal Government is compelled to support the debt in California.
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