P.I.G.S (sw)
Saturday, February 6, 2010 at 12:34AM In stock exchange parlance the P.I.G.S are Portugal, Ireland, Greece, & Spain, the acronym describes the financial state of these nations as they are virtually bankrupt. Sovereign debt is debt owed by a king, in the modern era the king is the government. When these countries default on their sovereign debt, which is not long from now, it will greatly rattle the financial world.
GDP (gross domestic product) is all the goods and services the population of a country produce in one year, you could say it is the gross turnover of the cash register of a country. In the EU the maximum deficit a country is allowed is 3% of GDP, Greece is running a deficit of 12.4% of GDP and they are small country with not a lot of industry and hundreds of billions of debts.
The Pressy of Greece, Mr. Papa-Loo-Loo came up with austerity measures to handle the crisis, which included getting the civil servants to agree not to put in for a pay rise and beefing up the tax collectors to harass Greeks that it seems are very fond of dodging their tax. They may be broke but they ain’t stupid! Essentially Greece did not bring its budget down by even one drachma.

Herein lies the poison pill, no politician wants to fix the problem they are all on the money-heroin—addicted to spending and feeling important and feeding the citizen vote-catching benefits and free loot. The citizens got used to the free ride but if you look at nature there is no free ride so the addiction has to be cured in the end.
Oh! Bama decided that the way to tackle the vast US’s debt was to spend $1.45 trillion dollars more than will come in this year, that is the highest deficit since the end of the war in 1945. The idea is that spending the money will help the economy and the US will trade out of its difficulties. This tactic pre-presumes there will be anything left of the economy in years to come. The US’s deficit is almost the same as Greece’s 12.4% if you add the debts of the government’s businesses like Fanny Mae and Freddie Mac whose function is providing mortgages to people that don’t pay. Oh! Bama is not talking austerity measures he’s talking spend, spend, spend.
So a little broke country like Greece and the other members of P.I.G.S will collapse the system as everyone suddenly wakes up to the fact that sovereign debt will never be paid off and trillions will be lost by banks and other lenders. There is not enough money in the world to bail out Western countries like the banks got bailed out during the recent real estate crisis.
It's an AM—FM thing.
These megalomaniacs are not tuned to the (AM) Austerity Money waveband, they are on the (FM) Free Money wave band. And that’s all you need to know about economics, it will affect everybody. “Fate is not without a sense of irony” as Morpheus says in the Matrix film. All these people addicted to the free money-heroin will get lots and lots of what they love so much, as they will need a sack with a few million in it for a cart of groceries, and the Governments will print the money as fast as they can. The addicts vaporize in mountains of bank notes that don’t have any real value. They choke eating paper. ‘Karma is most precise’ as ya man Stuie Wilde has said many times in his books and articles.

As governments print money to try to solve the problem and so to feed the addiction, it will cause hyperinflation like at the time of the Weimar Republic in Germany when an egg cost 10,000 marks one week and a 100,000 a week later and teachers were paid with barrow loads of money twice a day.
That is why I’ve been pestering readers to buy gold, as when all else fails gold is gold; it is the eternity of the Living Spirit and its Gods solidified for us humans to treasure. The Grey Haired Man that dictated the Book of Revelation to John of Patmos said, “Buy gold” he knew what the end looked like and he knew you’ll get loads of eggs for an ounce of gold. He was a savvy dude that really loves us. (sw)











