May 252010
From the Daily Reckoning:
“We have crossed the Rubicon and events in the world economy are now likely to unfold in a totally uncontrollable fashion,” laments Egon von Greyerz in yesterday’s edition of Whiskey and Gunpowder. “Clueless governments…will continue to prescribe the same remedy that caused the problem in the first place, namely more credit and more printed money…
“Never in history,” Egon insists, “has the world been in a situation when virtually all industrialized countries are bankrupt. Therefore there is no precedent for what will happen in the next few years. What we can be quite certain about is that events will happen in a seemingly random pattern and that it will be impossible to forecast where the next crises will start.
The simplest sign that government is torturing the monetary system is that it is impossible to be a saver. We may hoard assets, but without interest. This is unnatural.