Date: January 3, 2012
Coyhaique, Northern Patagonia

Yesterday we discussed certain events that, in my view, are nearly mathematical certainties. Things like a restructuring of public pensions and Social Security in Europe and the US. Western governments blocking Internet and mobile networks. War. The US government being forced to issue debt in a foreign currency.

All of these events are underpinned by a simple premise:

1) Public and private debts included, most western nations are insolvent. Big time.

2) History shows that economic growth in such an environment is nearly impossible when such a large percentage of GDP must be allocated solely to interest. Most countries in this position either default or [hyper]inflate. Both have catastrophic consequences.

Read more: http://www.sovereignman.com/expat/eight-simple-truths-you-need-to-know-about-2012/#ixzz1iaIztUjB