Preparing for the Demise of the Euro

Discussions about Money Management and Risk Control.
stopsareforwimps
Roundtable Knight
Roundtable Knight
Posts: 199
Joined: Sun Oct 10, 2010 1:47 am
Location: Melbourne Australia

Re: Preparing for the Demise of the Euro

Post by stopsareforwimps » Sun Jan 01, 2012 11:23 pm

stopsareforwimps wrote:Until a few moments ago I had a long position in the Euro, as a partial hedge against short positions on various Euro country stocks.
This shocking article on financial repression may be of interest to those who have or aspire to have some wealth. As governments try to get out of debt, all sorts of dirty tricks are used. Claims by eg Krugman that the US has been in this level of indebtedness before (eg after WWII) take on a new meaning in the light of this information. tl;dr - governments will steal the money back through inflation and other means.

THE LIQUIDATION OF GOVERNMENT DEBT
Carmen M. Reinhart
M. Belen Sbrancia

http://www.nber.org/papers/w16893

ABSTRACT

Historically, periods of high indebtedness have been associated with a rising incidence of default or restructuring of public and private debts. A subtle type of debt restructuring takes the form of “financial repression.â€

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