In Response to "Debt Crisis Of Faith"

in response to "Debt Crisis of Faith" http://www.ft.com/cms/s/0/d9cd3e44-a800-11e0-afc2-00144feabdc0.html#axzz1R7WFBrv2, I submitted the following comment:


The Financial Times argument pro Brady bonds completely misunderstands in general the invariance of default and more specifically, the lack of faith in fiat currency. With the decoupling of currencies from the gold standard, the shell game has become one of relative values, and moreover, the collateralisation required for Brady bonds would simply expose and emphasise the degrees of emptiness of the reserve currency in question. Off balance proposals are proxies for government approved Ponzi schemes. We should expect the bailout-default-bailout to continue through Italy, Spain, Belgium, then France and the UK, although the UK may dodge the bullet because its policies appear to allow it to hedge more nimbly than the others. Après Europe, the risk transmission should continue with fury through the US states, and then finally, to the.US Fed and Treasury. Well before that most government employee pension schemes will be pillaged by their respective governments. These problems are obvious and logically predictable since 2008. We are about to experience the climax of the great cycle of defaults.