http://www.bloomberg.com/apps/news?pid=20601087&sid=agLiLPeFZCE4&refer=home
Simple Speak....
Once upon a time there was a country which lived within its means and provided a stellar economic example to other rising star countries....
However things changed....
Both the country and its citizens starting building debt such that debt became a mistaken sign of wealth....The country played the game "you know that I am always good for it" and kept cutting its orchard trees such that there was no way to repay the debt....
Thus there came no solution other than trying to keep rolling its debt into future....The debt became so large that the interest alone became unpayable....
Thus a failed state ensued....
Furthermore its debt demands were so large that it was impossible to sell debt to others because even collectively available currency was not sufficient.....
Thus monetization became the only option which led to a monetization domino effect upon other countries throughout the world....The few countries that were registering surpluses had to monetize in order to protect their own export markets ....The other countries who also ran deficits simply could no longer borrow, and had to monetize as well....
So at the end of the day....most every world currency was deeply diluted such that huge disruptions in commodity prices prevailed....
But finally there was a calming of all currencies and markets as the total became more equlibrant....in that commodities were re-priced in accordance with normalized demand....
The tide went up and down....and all boats rose and fell with the tide...with some uneven waves....
Simple Speak....
Once upon a time there was a country which lived within its means and provided a stellar economic example to other rising star countries....
However things changed....
Both the country and its citizens starting building debt such that debt became a mistaken sign of wealth....The country played the game "you know that I am always good for it" and kept cutting its orchard trees such that there was no way to repay the debt....
Thus there came no solution other than trying to keep rolling its debt into future....The debt became so large that the interest alone became unpayable....
Thus a failed state ensued....
Furthermore its debt demands were so large that it was impossible to sell debt to others because even collectively available currency was not sufficient.....
Thus monetization became the only option which led to a monetization domino effect upon other countries throughout the world....The few countries that were registering surpluses had to monetize in order to protect their own export markets ....The other countries who also ran deficits simply could no longer borrow, and had to monetize as well....
So at the end of the day....most every world currency was deeply diluted such that huge disruptions in commodity prices prevailed....
But finally there was a calming of all currencies and markets as the total became more equlibrant....in that commodities were re-priced in accordance with normalized demand....
The tide went up and down....and all boats rose and fell with the tide...with some uneven waves....
