DEBT is a no no in this kind of economic atmosphereIm looking...

DEBT is a no no in this kind of economic atmosphere

Im looking for the BLOWOUT to occur when greece defaults or when the real losses are disclosed by euro banks whichll have to get more bailout money - - -one things for sure, europe will have to INFLATE and PRINT A TONNE LOAD OF MONEY TO HELP GREECE THE THE EURO BANKS AND THE EURO ZONE

*** But theres ONE good aspect here: europes money supply is only HALF that of the USA! That in effect means they CAN UNFLATE and PRINT MONEY , TWICE AS MUCH MONEY If need BE! AND THEY WILL PRINT MONEY. ITS ALL A GAME OF CHESS. USA PRINTED FIRST AND THEIR USD WENT DOWN RELATIVE THE EURO; NOW EUROPE HAS WILL INFLATE AND PRINT MONEY TO GET OUT OF THE MESS AND THE EURO WILL GO DOWN RELATIVE THE USD. IN THE MEANTIME , THE TRADITIONAL EURO ZONE ECONOMIES LIKE GERMANY, NTH EUROPE , FRANCE AND THE UK,,, WHOSE ECONOMIES ARE STILL PRETTY SOUND, WILL HAVE ALL THIS INCREASED MONEY SUPPLY OF EUROS,,,,AND EVENTUALLY ALL THIS EXCESS EUROS IN THE SYSTEM IN THESE ECONOMIES WILL FILTER THROUGH TO THE USA AND THE REST OF THE WORLD.

* REMEMBER A MAJORITY OF THE WORLDS CURRENCY IS THE USD ABOUT 65%, THEN THE EURO ANOTHER 20% OR SO, THEN THE BRITISH POUND 5%, THEN THE YEN 5%. EUROPE INFLATE AND PRINT MONEY....THE UK , GERMANY, FRANCE , NTHN EURO ECONOMIES WILL HAVE MASS EXCESS EUROS IN ECONOMIES THAT AT PRESENT ARENT TOO SHABBY....THEY WILL SPEND AND CREATE DEMAND....THE USA WILL BENEFIT AS WILL THE REST OF THE EURO ZONE. THE EURO WILL GO DOWN RELATIVE THE USD LONG TERM. THUS THE 2 DOMINANT CURRENCIES WILL BE ON PAR. THE US WILL HAVE ACHEIVED ITS GOAL OF BRINGING EUROPE AND THE EURO DOWN TO SIZE.

In the meantime FMG will suffer as long as theres a crises in europe re greece and the banks

IN THE LONG TERM FMG WILL PROSPER FROM ALL THE INFLATION THAT EUROPE WILL CREATE BY PRINTING

BUT THATS THE LOOOONG TERM

NOW WE HAVE TO DEAL WITH THE PROCESS OF THE EURO BAILOUTS ROUND AFTER ROUND ALA THE USA

AFTER ALL THIS, FMG AND MINING STOCKS WILL BE GOOD INVESTMENTS

*** CHINA dont want to UNPEG THE CURRENCY coz they have a massive amount of DEBT in the SOE sector! They have 1.7trillion in DEBT....the chinese banks go to pvt businesses and tell them theyll give them all the money in the world to expand if the CHINESE GOVT and BANKS get a 50% stake in their business. The USA banks own about 20% of the CHINESE banks. Theyre shitting themselves over all the DEBTS that the SOEs have coz theyre EXPOSED to this DEBT and dont want more risk of losses on their balance sheets. 20% of 1.7trillion in debts will send the USA banks outta biz! The CHINESE know this and thus will never unpeg the YUAN as it can and WILL get sold down HEAVILY should this 1.7trillion in debts by SOEs ever be a problem. Its ALREADY a MAJOR HEADACHE and PROBLEM to the USA who own 20% of chinese banks.

***** In the end its all a GAME of currencies.....the USD is down bigtime now, but, EUROPE will have NO CHOICE but to PRINT and GROW their MONEY SUPPLY to pull out of the mess in europe. They have only 50% of the MONEY SUPPLY OF THE USA , so theres tonnes of scope to PRINT, AND THEY KNOW THIS, AND THEY WILL. That way the USD wont be so low relative the EURO, which is GOOD for both, coz the european nations will become more competitive with a LOW EURO....right now its killing their competitiveness. The USD being low now for the next cpla years will ensure the USAs competitiveness. The euro zone increased money supply in economies like germany, UK, Nth europe, france etc will lead to excess demand as these countries' economies are 'decent to good' most of them. All this increased money supply in europe will pull the sthn euro countries outta recession and increase euro competitiveness.

It was all a game of chess. USA did it first; Now europe have massive scope to inflate. China will remain pegged bcoz of the mass SOE trillions of debt which is scaring the USA banks. USA banks can make a profit and SELL their chinese banks 20% equity down. Its too dangerous as that 1.7 triilion in debt can send the USA bankrupt AGAIN.

It all a game of currencies and the USA can bail its hide out this time bcoz they have 65% of the worlds currency, so even after europe inflates, theyll be OK and still a dominant currency with europe. Chinas no threat with all the debts the SOEs are running with the government there. Its still a risky currency DESPITE china being the major net lender to the USA etc.

The USD and the EURO prevail, chinas not that 'great a threat' with all their SOE debts; If theres ever economic downturn in china, and the SOEs start losing money, that 1.7 trillion in debt is a major problem for the YAUN and all the other countries that have stakes in chinese banks!