Dec 9, 2011
Martin Armstrong is back on the show to talk about what's really happening to the world financial markets. He explains how flimsy the entire Euro structure was from the get-go. He advised the leaders to unify Europe both monetarily and fiscally, but they rejected that advice, rightly believing that theexpanded European Union would never have been approved. His only surprise is that the entire structure held together as long as it has. He believes that Germany will be forced to inflate, because no one is willing to accept the consequences of massive deflation, complete with bank failures and widespread unemployment. Therefore, the politicians will take the path of least resistance as they always do.
MF Global was another disaster of massive proportions. It is now obvious that your money is unsafe no matter where it is being kept, except perhaps in physical gold and silver. The clearinghouse was always supposed be the ultimate guarantor of customer funds, making good on customer accounts when companies failed. However, this never happened in the MF Global failure and there are many thousands of investors left holding the bag. But more importantly, confidence in an already shaky system has been furtger undermined. The eventual results could be devastating to all investors any place on the globe.
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