Tuesday, March 29, 2011

S&P Downgrades Portugal and Greece

The Standard & Poors ratings agency has downgraded Portugal to triple-B-minus and Greece to double-B-minus.

Bankruptcy or inflation is the ultimate "solution", given that residents of the PIIGS will riot against cuts in government payouts.

A bankruptcy would hurt the elitist banks holding PIIGS paper, which means if you are a betting man, choose inflation. The only question remaining is whether the European Central Bank does the printing, or whether the eurozone breaks up and each of the PIIGS resorts to bringing back their separate original currencies that they then inflate.

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