As the currency and financial systems of the developed world’s social-welfare-states head towards their doom, the battles between King Kong (Mother Nature and Darwin) versus Godzilla (public servants and banksters) continue. After generations of defying the reality that you must produce more than you consume, the social welfare states are being presented with the bill for their unpayable social obligations.
Modern day kings and their courts in developed world capitals are learning what King Canute once did: you CANNOT stop the tides from rolling over you; man is not god; he cannot command nature or defy its laws (i.e., survival of the fittest and producing more than you consume or perish/submit to those who do) and to believe he can is FALSE. POLITICS and MAN WILL NOT PREVAIL OVER NATURE or MARKETS (which are nature).
Morally and fiscally-bankrupt public servants, ratings agencies and finance ministers can try to DECLARE that bankrupt sovereigns and financial systems are AAA, but it does not change the fact that they are BANKRUPT. They only produce PAPER illusions and, like governments and kingdoms in history tried to turn lead into gold, this form of sovereign alchemy will FAIL as well. We only wait for history to roll over them like the tides. The farther they climb out on the limb, the bigger the coming economic and financial system CRASH.
Black swans are taking flight in a number of areas; the “when hope turns to fear moment” continues to advance towards the social welfare states.
Broken promises loom. First, the entitlement promises to the something-for-nothings which have driven us to this point, and then, ultimately, to the holders of Bonds through the IOU’s in which they are denominated, known as G7 currencies (US dollars, British Pounds, Euros, Swiss Francs, Aussie and Canadian dollars.)
The greatest transfer of wealth from those who store it in paper to those who don’t has commenced: A Crack-up Boom is on the horizon……
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