Will Germany Go All In?

[JB2033]

Kyle's most recent letter to investors

Hayman_Nov2011

Here are 3 more references that I think are worth reading:

Currency Wars, The Making of the Next Global Crisis by James Rickards

Money Mischief, Episodes on Monetary History by Milton Friedman

Fiat Paper Money, The History and Evolution of our Currency by Ralph T Foster

Thanks for posting that was a very interesting read.

The only answer to the problem is to stop building debt, or excessive economy growth. Unfortunately neither appears imminent.

Soon; Germany and other relatively fiscally strong countries will be faced with a choice: try and save other nations, or try and save yourself. I belief this is why you are seeing such resistance from Germany when it comes to a joint Eurobond; instead of going down with the PIIGS (which I believe Germans believe are beyond the point of default) Germany has made the decision to try and save itself.

 

[MichaelB]

Thanks for posting that was a very interesting read.

The only answer to the problem is to stop building debt, or excessive economy growth. Unfortunately neither appears imminent.

No need to limit the options. Tax evasion is high in some European countries, as is the informal economy. Italy has 20% of its economic activity outside of official reach, untaxed, and substantial wealth. There is sufficient income, wealth and activity in the EU to pay this debt.

Soon; Germany and other relatively fiscally strong countries will be faced with a choice: try and save other nations, or try and save yourself. I belief this is why you are seeing such resistance from Germany when it comes to a joint Eurobond; instead of going down with the PIIGS (which I believe Germans believe are beyond the point of default) Germany has made the decision to try and save itself.

Germany depends on those other nations as much as they need Germany. That is why they (Germany) have not turned away completely and let them (Greece, etc) fail.

 

[samclem]

Germany depends on those other nations as much as they need Germany. That is why they (Germany) have not turned away completely and let them (Greece, etc) fail.

Germany depends on these countries primarily as markets for German exports--which, it turns out now, are ultimately paid for with German money pumped into their economy. Maybe the Germans will cut out the Greek and Italian middlemen and just start doing huge deficit spending in their own economy. If they revert to the Deutsche Mark they could even print a bunch of extra ones in case they run short. In this regard, maybe the Germans can learn something from the US. Why ruin your economy to artificially prop up standards of living in another country when you can ruin your economy for the temporary satisfaction of the locals?

 

[Running_Man]

Here is a link to the most recent Kyle Bass interview in 2011 at Americatalyst I personally find these interviews very interesting.

Here is the Black Swan of Cairo paper he refers to in the interview:
http://www.fooledbyrandomness.com/ForeignAffairs.pdf

And here is a link to the book "All the Devils are Here"

http://www.ebooksdownloadfree.com/B...-Hidden-History-of-the-Financial-BI16844.html