ZeroHedge.com posted an insightful article today claiming the collapse of the G-7 is imminent and the bail out of Greece is irrelevant. While the doomsday article may be argued as scare tactic journalism, it is hard to argue the point that G-7 countries have backed themselves in a corner. While investing in their recovery with trillions of taxpayer dollars with no way out but to hope for another market recovery like the 2004 real estate boom, the future of the G-7 is not in good shape.
Unfortunately, if the plan is for the EU to bail out Greece, the US bails out the EU, and Greece to bail out the US, the financial collapse is indeed inevitable. The following is an excerpt from the ZeroHedge article…
For Greece, with on and off balance sheet liabilities at over 800%, it’s game over. For the Eurozone, with the same ratio at about 500%, it is also game over. For the US, at 500%+, it is, you guessed it (sorry Joseph Stiglitz), game over, but since we have the printers, it will simply take a little longer. Following up on yesterday’s popular post on prevailing delusions as captured by Albert Edwards’ colleague Dylan Grice, we present Albert’s latest outlook. Please don’t read this if you want to keep believing there is any hope left for the (developed) world.
