Latest Issue
Staring into the Abyss
January 21, 2012
Choices, Debt, and the Endgame
Staring into the Abyss
An Unintended (and Very Negative) Consequence
A Preview of Coming Attractions
Hallucinogenic Data and Other Fun Activities
Gentlemen, Choose Your Disaster
What Europe Should Do
South Africa and Sweden
"If we want everything to stay as it is, everything will have to change."
– from The Leopard by Giuseppe Tomasi di Lampedusa
"The crisis takes a much longer time coming than you think, and then it happens much faster than you would have thought, and that's sort of exactly the Mexican story. It took forever and then it took a night."
– Rudiger Dornbusch
Europe's leaders are committed to keeping both the euro and the eurozone as it is. But for it to do so, everything must change, as the wonderful quote from the 1958 Italian novel suggests. This is no easy task, as no one wants a change that will impact them negatively; and there is no change that will allow things to stay the same that does not impact all severely, as we will see. In the third part of a continuing series, we look at the actual options that are available on the menu of choices, or as one group called it, the menu of pain. I offer some guideposts that we should watch for along the way, and end by offering a suggestion as to what Europe should do. As has been the case in this series, I do my best to offend everyone at some point. If by some small, unintended oversight I do not, then wait another week, I will get to you. What else are friends for?
But before we take on Europe, let me quickly tell you to save the date for my annual Strategic Investment Conference, co-sponsored with my partners, Altegris Investments. And what a lineup we have this year. Already...

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