Again, we enter the world of rumors and innuendos about Europe. I am reissuing a piece from June 2010 just to reflect how the European merry-go-round is not about resolution but obfuscation. It is important to reflect and gain perspective before I move on to analyze the possibilities before us on any type of dramatic resolution, similar to the rumors that swirled on Friday about Greece leaving the EURO. The possibility of a Greek drachma rebirth would create various outcomes. It may well provoke a EUROPEAN BANKING CRISIS, which could have a deflationary effect on the global financial system, and may well be why the WORLD’S DEBT MARKETS ARE CONFOUNDING THE EXPERTS BY REFUSING TO GO INTO A TAILSPIN. Much to think about as Europe seraches for the solutions to a difficult situation.
June 14, 2010: Greece Shakes; Spain Rattles; and German Government Threatens to Roll