In my very first economics class at university we were given the definition of economics. Economics: “the study of the distribution and allocation of limited resources.” As far as resources go, the most valuable resource I know of is “time”. Thus, I will do the readers of this article a great service by revealing a way to preserve this most valuable of resources. Don’t waste anymore of your precious time reading, listening or studying reports about Greek bailouts. And for that matter, European bailouts in general. Spend time with loved ones. Cook a healthy meal. Read a book. Do anything else that is productive. But promise yourself not to give away one more single second of fleeting time on this subject. I will save you hours of time by revealing the ending to this novel. Here it is……Greece Defaults. This will be followed by defaults from Italy, Portugal, Spain, France and then the big one, Great Britain. Of course this will set the stage for the biggest default of them all…the United States.
Is this sobering stuff? You bet it is. The global financial system is drowning in debt. Governments and central banks are trying to solve this problem by creating more debt. This will not work. I read a statement recently that applies very well to this situation. “Things that are unsustainable will end.” Plain and simple. Makes sense doesn’t it? A global financial system built on the foundation of debt, must eventually crumble. So far, the solution to the global debt crisis is to heap more debt on the problem. Yes, that’s the ticket. The solution to the problem is to intensify the actions that originally lead one to that point in the first place. So based on this logic, if one has damaged one’s health through inactivity and consumption of fast food, then the cure must obviously be even less activity and more consumption of unhealthy food. It’s so simple, even a caveman can understand it.
I do not mean to make light of this topic. This is extremely serious stuff. The global financial engine (the middle class) is disappearing. People and families are working harder and their currency buys them less with each passing day. The concentration of wealth is intensifying. I feel that the implosion of the current financial system will ultimately be a good thing. From the ashes of the present burning financial system will hopefully arise a new currency paradigm that promotes savings, sustained purchasing power and a fairer distribution of wealth.
This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.