Guest Post: Road Map To Ruin

http://www.zerohedge.com/news/guest-post-road-map-ruin

Road Map to Ruin

• Budget deficits in “good” times, build-up of government debt
• Few countries’ (GER, NED) exports lead to trade deficits for others (GR, ESP, POR)
• Costly bank bail-outs and fiscal “stimulus”
• Monetary stimulus (0% interest rates); useless
• Rating agencies finally wake up (downgrades)
• PIIGS unable to sell more debt as yields rise
• IMF/EU (read: taxpayers) step in to provide more debt, crowding out private investors
• Austerity measures lead to social unrest

• Corporations unable to access capital markets
• Default and Euro exit by various countries
• Run on banks, bank “holidays” (closed for week)
• Insurance companies going bankrupt
• Capital controls (restricted transfer of money)
• Indiscriminate printing of money by ECB/EU/IMF
• “Super-tax” on gold to punish “speculators” after gold price triples. Some Central Banks discover their gold is gone. Run on gold. Paper gold worthless.