MARC FABER: THE MARKET COULD MOVE SIDEWAYS TO DOWN
3 February 2010 by Cullen Roche
1 Comment
Some good macro thoughts here from Marc Faber. He covers everything from Russia to the U.S.:
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Comments
The price level in the PIIGS is too high and wages most go down on the international level, while the budget cuts needed for these countries to remain solvent during a deflationary depression enforced on them by Germany via the Euro are so staggering that no modern democracy will be able to handle. As the riots in Greece have shown, any government in the world that will try to make public spending cuts in double digit percentage points will not survive. Not to talk about the fact that will need to lower the minimum wage during a depression, an action never done by any government.
It will cause a euro collapse