It has been an interesting few weeks. In the main I follow three newsletters or commentators & a couple of other sources of up to date information as the financial crisis continues to unfold.
Surprisingly for the very first time all three newsletters & commentators were on the exact same wavelength.
In the past they have talked about this crisis coming to a conclusion in 2015, one commentator on a newsletter said by May 2011 as that will be the same period from the start of the Greek crisis that it took from bear Sterns to the fall of financial markets.
More recently I have been informed that stockbrokers are talking to taxi drivers of December 2010 being the crunch.
Then the three emails came in almost together. The end is in sight.
The end of what? the end in this round of the cycle that we seem to want to put ourselves through as human beings.
The Sovereign debt crisis which is what this has now become, is not over. It is just beginning & with it the break down of social order.
To make it worse the Eurozone to bail out its members has now taken the same action as those in the UK & US have taken.
The Germans are not happy as they still have memories, not of the deflationary depressoin which much of the world suffered last time, but of their earlier hyperinflation depression.
It is reported that much of the gold now being bought on the markets is now heading to Germany as they rush to protect themsleves. There is even a quote stemming from 1923 of how one person withdrew their whole 100,000 marks & it bought them one tram ticket for a ride around the city.
Hyperinflation in Germany: Perceptions of a Process
Inflation & in particular hyperinflation is the tax that governments impose by printing (or in todays attempt to hide the truth, quantitve easing) that sneaks up on people.
People who lived through the times talk of how dangerous it was & how the crime was out of control. Think it is getting bad now. Just wait.
When will it happen? No one can really tell as those have made it possible are trying what they think is right to save the situation & are actually making it worse in the long run. History just shows though that when it happens, it happens fast & they bigger the debt, the faster it happens.
The first recorded correction took 300 years. The German hyperinflation correction took four years. Gold is now going up no matter what, though a the end there is talk that it will drop initially, then head north.
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