And so the dominoes start to fall

I stand at the Stoa in all seriousness tonight. The insanity of our Federal Reserve, the contrary monetary policies of Europe (i.e. contrary to ours...which are really wrong), and the interlocked debt swapping around the world have finally reached "end game".

Some time ago, Glenn Beck was scratching around on his chalk board and he made a note that Europe owed each other gobs of money, spending borrowed money while owning each other even more money. Well, any reasonably intelligent person will note that if you and your friends just keep borrowing money from each other and spending that money irresponsibly, that sooner or later the system will begin to collapse.

Greece was a wake up for everyone earlier this year. The PIIGS was in full play and only a massive bailout (i.e. even more money being spread around) kept the dominoes from beginning to fall. The problem is, the first bailout really was the the energy needed to start the dominoes going. Just has high pressure must flow to low pressure, in a bail out, a country with a huge pile of money is left with a smaller pile of money and the bailed out country may or may not clean up their books. If the behavior continues, or is covered up, as in Greece and Ireland, then the country will truly default on their obligations. That means that those countries that loaned the money are out that money and will take a shock to their economies. A second country will fall off the cliff, in this case, Ireland (Iceland actually fell off first, but no one really noticed it). That country will need a bailout (just as in the news today) and will likely also fail. Then Portugal falls of, followed by Spain. Italy will not be far behind and then we get to France, Britain, and Germany. Germany is the strongest of the European nations and when they fall off the cliff, the United States (which has a large exposure here as well) and China will be staring out over the ruins of the global economic system.

The United States is an economic basket case as well. We are in a pre-hyperinflationary phase and the Fed brains are doing their best to ensure a complete meltdown. Why, I have no idea. China holds, and is still buying (!) tons of our debt. Debt that will only be exchangeable in real estate, real resources, or in favors.

The dominoes have started. Watch Europe. Watch the nations fail one at a time. The US can not stop the collapse like we did just after WWII and France in the 1950's. We can not help, anymore.

Get your debts settled or cleared, get your money out of the market and other non-tangible funds. Get your family together and work out plans on who will or can move in with whom. Things are already bad, but we have not even seen the worst of the beginning yet. It is going to get much, much worse, students.

Now, try to sleep this night after what I've said. Enjoy your chocolate milk, your book, and your TV program. Life will go on and you will need to find comfort and happiness wherever and whenever you can.

Live well.

--Zavost