Tuesday, 10 January 2012

“Let them eat bonds!” Before they eat themselves.

Despite conventional wisdom, government bonds are not a good investment. The endgame for government bonds is either default or default—either outright default or default by central bank-created inflation.

And as the Euro crisis (really a govt debt crisis) plays out, it’s clear enough that endgame is coming soon.

“The government bond market is still skating on thin ice,’ says Detlev Schlicter, and with it “the entire financial system.”

Read about it here at Detlev’s ‘Paper Money Collapse’ blog.

And learn about his thesis here, in his recent talk to London’s Adam Smith Institute, described by 'Libertarian Home’s Andy Janes as “very impressive, if terrifying.”

He argues that the present financial crisis is far from over; generally misunderstood and misrepresented, it is far from being a ‘crisis of capitalism’. Detlev traces the history of failure of paper money systems and lays out why present policies pursued by various governments and institutions are misdirected and counterproductive.

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