Next Time it’ll Hurt More

By Econ70 | 03/22/2012

Hard as it was, the recent Greek default was easy because Greece just stiffed private banks and hedge funds. Next time – yes, next time – it will be harder. This is because most of Greece’s debt is now held by the IMF, the ECB and many European nations who lent directly, or via the…

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Return to Drachma

By Econ70 | 05/10/2011

Greece must leave the Euro! Argentina (Arg) shows why. From ’98 through ’01 Arg was in a bad recession; the Peso was pegged to the USD. Arg borrowed from the IMF cut spending and the economy tanked. Then Arg defaulted on its foreign debt. The economy shank a bit but has been great since. In…

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China to Surpass USA in ’16

By Econ70 | 04/27/2011

27 The IMF has determined that China’s economy will surpass ours in 2016 – in 5 years! Many have said it will happen in the mid 2020s; they are wrong. 1) The Chinese currency is massively undervalued. 2) Using Purchasing Power Parity (PPP) which measures what people spend and earn in their own currencies China…

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