Ty Andros and I wrap-up the week and discuss the serious situation in Europe, especially Spain. A former partner of mine who worked for a large telecom company always used to state, “The situation is hopeless, but never serious.” But for Europe and the US it often appears hopeless and extremely serious. But, perhaps the “geniuses” that reside at the Fed and the European Central Bank will find a way out. That hasn’t happened yet, and we’re extremely skeptical that it will happen now, which means, it’s inflate or die.
The problem with this approach is that it merely puts off the day of reckoning to a time when hyper-inflation becomes the inevitable result of profligate money printing. This is where the world is heading! Every central bank in the world seems to have its chairman’s gaze fixed on the rearview mirror and his foot all the way down on the accelerator. They are all acting totally oblivious to the abyss quickly approaching ahead. Perhaps one day soon the charmen will soon stare into that abyss and slam on the brakes. We can only hope!
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