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October 21, 2016 | Sovereign Debt Crisis is Percolating – Greece Asks for Debt Relief

Martin Armstrong

Martin Arthur Armstrong is the former chairman of Princeton Economics International Ltd. He is best known for his economic predictions based on the Economic Confidence Model, which he developed.

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Greek Prime Minister Alexis  has come out today and bluntly warned that failure to agree on a debt restructuring for Greece would push it into a perpetual spiral of borrowing from Europe. But it is actually much worse. Greece is being persecuted because its old debt was converted to euros and that made the debt increase. These politicians are simply brain-dead and cannot comprehend currency.

The Sovereign Debt Crisis is indeed percolating. We are headed into a dark abyss for politicians cannot understand that there is no reason to borrow if you have no intention to every pay off the debt. We inevitably reach this conclusion that sovereign debt is the worst of all because there is no possible plan to ever pay it off. In the end, it is always just written off in debt relief. This is what caused the massive Great Depression as sovereign debt defaulted wiping out savings. That money was just gone! Welcome to the dark world of DEFLATION.

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October 21st, 2016

Posted In: Armstrong Economics

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