The great Milton Friedman famously predicted in 1999 that Europe would not survive it’s first economic crisis – it’s looking more and more like Uncle Milt is going to be right on the money.
The debt ratings of the PIIGS are going down faster than a stack of dominoes, with Spain being the latest Club Med downgrade. Stratfor reports that the situation is on the verge of becoming real serious, real soon:
It’s hard to see ANY way this could end well. This sovereign debt fire is on the brink of becoming completely out of control – I mean where’s it going to stop? It’s not like any European nations are fiscally responsible.
Plus – and here’s the final kicker – Europe’s demographics are terrible. They are already old, and are getting older real fast – so you can pretty much kiss any fantasies of these economies “growing their way out” of this crisis goodbye.
In a way, it is pretty awesome to see all of the sovereign nations in the Western world race to see who can financially implode – quite breathtaking!