Monday, August 16, 2010

Monday Morning 'Good' News


Linked from Zero Hedge:

NO, THERE WILL BE NO DOUBLE DIP. It will be a lot worse. The world economy will soon go into an accelerated and precipitous decline which will make the 2007 to early 2009 downturn seem like a walk in the park. The world financial system has temporarily been on life support by trillions of printed dollars that governments call money. But the effect of this massive money printing is ephemeral since it is not possible to save a world economy built on worthless paper by creating more of the same. Nevertheless, governments will continue to print since this is the only remedy they know. Therefore, we are soon likely to enter a phase of money printing of a magnitude that the world has never experienced. But his will not save the Western World which is likely to go in to a decline lasting at least 20 years but most probably a lot longer.

- Egon von Greyerz, Matterhorn Asset Management

I'm afraid I agree with everything von Greyerz says. It's the end of the era. The imminent fall is will be exacerbated by world central banks applying the "quick fix" of printing more, increasingly worthless paper (fiat) money and driving up the prices of commodities. When the day of reckoning comes the pain will be much worse and greatly prolonged. What else is there to say except batten the hatches, get out of debt, and live as far below your means as possible?

Soon, living high on the hog will be a fatal disease for most families and countries. As my father used to say and mean, Time to tighten your belt......

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