[zdo]

Debt that cannot (vs. “will not”) be practically paid is not a debt in its classical sense. It’s a default. Whether or not people want to recognize this reality is another issue. We recognize that a law that cannot be enforced is not really a law in any practical sense, so why are we dragging our feet with debt? Greece cannot pay its debt by any rational formula. It is already in default. Extending and pretending does not materially change this fact, it only delays recognition of the stark, enduring reality.

charles hugh smith-Unleashing the Future: Advancing Prosperity Through Debt Forgiveness (Part 1)

re “Debt that cannot (vs. “will not”) be practically paid is not a debt in its classical sense. It’s a default”

So while “Italy is Going to Be Next” may not be next
Italy is on that same list as Greece of states whose debts cannot be practically paid
Spain…. list goes on and on
and the list includes the U.S.
… we are already in default :7x!:
Are we in denial too?
The only way any of these debts get “paid” is if the many countries on the list find a way to repay the debts with counterfeit money… ie the "debt" is never really going to get paid.

[SIUYA]

Originally Posted by zdo »

Thanks.
:stupidquestionsmilee:
Why?

Why - in my opinion, the market will swing this way...thats all. The view is Germany is a stronger economic nation than the UK. Now a rise in the DM might be excessive enough to then negate this....but initially this might be how it goes. What will be interesting is which countries also close their borders, otherwise watch the rush of people to get out of their own countries - its not great coming from Greece (say) to the UK to work for 5 GBP and hour, but it that is suddnely worth a lot more - people may be more incentivised to move. Thats also why I think the Eurozone members realise they have to do as much as they can to not let it fail.
However, if the EUR fails and the old currencies are brought back, this is my initial opinion....but I try not to trade off those unless the prices confirm it

[Trotta]

TheNegotiator -
Regarding the 3D graphic i had found that actually gives a visual of what these massive figures being trashed around by these debt laden Ponzi schemes,sorry,governments looks like is via a link.

3D Visualization of the US Debt | USdebt.kleptocracy.us | iTradePod

And if anyone wants to question my retracted use of diction check out another one from the bbc The Euro zone debt crisis is beyond repair......They all have run up riddiculous amounts of debt. The Euro web of debt- Who owes who? is what the bbc have labelled it. (Click the country to see what they owe) To me it looks like a Ponzi scheme! Someone please explain!!


BBC News - Eurozone debt web: Who owes what to whom?

[SIUYA]

to really understand it you also need to understand when certain debts mature and how much debts cost. Plus if you said to an individual you owe $1mil but neglect to add their asset part of the equation it is only half the story.

Where it becomes a ponzi shceme is when people want their money back now.....and here is the rub....its not just the government running a ponzi scheme....its everyone.

Funding debt and unsustainability is causing the ponzi scheme the problems.....not because of interest rates, but because of the size of the debt v the ability to repay....v the ability to repay on demand.....and the issue becomes one of the governments continuing to encourage people to invest in the same way without fixing the problems.
Plus as MFG has shown all these accounts a BS anyway.

If the markets are a zero sum game, then what do we have to worry about right? One person losses, another gains.

[jonathan3880]

Very informative post. Keep it up.

[zdo]

Originally Posted by SIUYA »

to really understand it you also need to understand when certain debts mature and how much debts cost. Plus if you said to an individual you owe $1mil but neglect to add their asset part of the equation it is only half the story.

Where it becomes a ponzi shceme is when people want their money back now.....and here is the rub....its not just the government running a ponzi scheme....its everyone.

Funding debt and unsustainability is causing the ponzi scheme the problems.....not because of interest rates, but because of the size of the debt v the ability to repay....v the ability to repay on demand.....and the issue becomes one of the governments continuing to encourage people to invest in the same way without fixing the problems.
Plus as MFG has shown all these accounts a BS anyway.

If the markets are a zero sum game, then what do we have to worry about right? One person losses, another gains.

Would A Ponzi By Any Other Name Smell As Bad? | ZeroHedge

Diabolically continuing with the "there is no next" theme...

"...it reflects a peculiarly American trend of burying-in-the-sand Ostrich Think, so prevalent among mainstream publications: An unwillingness – bordering on inability – to look at financial news in a cold light, and see what it actually means, rather than what we hope and pray it might be."
– GONZALO LIRA

[SIUYA]

i came across a new saying which might just take off....and can be applied to debt.
while everyone is aware of the black swan event, what about the platypus event

This is the one despite all the evidence, despite the fact that its plain as day and obvious that it is real, there is a refusal to believe that what is happening is real.

(for those that dont know what a platypus is its a fascinating creature that when first discovered was for a long time assumed to be a hoax)

[Landser]

I was quite surprised when mr Soros in his last speech praised Italy for something like 'good progress in fighting with fiscal deficit'. Of course mr Monti is more tough politician than mr Berlusconi but I cannot believe that he will succeed in stabilizing the debt situation in the country.