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Katwoman
6th March 2010, 04:52
I have abbreviated the post at the link below in an effort to get at the key points quickly. Enjoy!!

The bad news for Greece is that despite some help from abroad, and some attempts at internal reform, investors are still leery of the troubled state. The good news, if you can call it that, is that they will soon have company in the penalty box.

Now that investors have come face-to-face with the reality of sovereign default in the developed world, greater scrutiny will befall those countries with fiscal conditions similar to Greece. The United Kingdom is a cause of great concern, with a debt ratio rapidly approaching Greek levels. The economic challenges facing Britain are aggravated by a Labour government that is pushing the country further toward socialism. As a result, from mid-2008 to today the pound sterling has lost some 25 percent of its value even against the US dollar. Debt and socialism are a toxic mix for investors.

History is littered with examples showing that socialism kills enterprise. The UK and EU are largely socialist. The US is becoming increasingly so. This political trend, coinciding (unsurprisingly) with a major recession, invites catastrophe.

It is one thing for prudent, rich states like Germany to bail out small states like Greece. But few states have the ability or the will to bail out financial giants like the US, EU, or UK. If such a maneuver were attempted, it would surely drag the entire world into depression -- and I don't take the Chinese or the Germans to be that foolish. Absent a reasonable avenue for rescue, we are increasingly likely to see these formerly steady giants topple. If you're stuck in their shadow, look out.

http://www.campaignforliberty.com/article.php

About the author:
John Browne is the Senior Market Strategist for Euro Pacific Capital, Inc. Mr. Browne is a distinguished former member of Britain's Parliament who served on the Treasury Select Committee, as Chairman of the Conservative Small Business Committee, and as a close associate of then-Prime Minister Margaret Thatcher. Among his many notable assignments, John served as a principal advisor to Mrs. Thatcher's government on issues related to the Soviet Union, and was the first to convince Thatcher of the growing stature of then Agriculture Minister Mikhail Gorbachev. As a partial result of Browne's advocacy, Thatcher famously pronounced that Gorbachev was a man the West "could do business with." A graduate of the Royal Military Academy Sandhurst, Britain's version of West Point and retired British army major, John served as a pilot, parachutist, and communications specialist in the elite Grenadiers of the Royal Guard.

In addition to careers in British politics and the military, John has a significant background, spanning some 37 years, in finance and business. After graduating from the Harvard Business School, John joined the New York firm of Morgan Stanley & Co as an investment banker. He has also worked with such firms as Barclays Bank and Citigroup. During his career he has served on the boards of numerous banks and international corporations, with a special interest in venture capital. He is a frequent guest on CNBC's Kudlow & Co. and a former contributing editor and columnist of NewsMax Media's Financial Intelligence Report and Moneynews.com. He holds FINRA series 7 license.

realmoney
6th March 2010, 07:39
This guy is from EuroPac, Shiff's investment company that focuses on investments in, you guessed it, Europe. So it seems to me that they are trying to deflect heat away from the very bad situation with the EU, Greece being today's EU disaster, Spain(?) possibly being the next. If I had a lot of money right now to invest in equities, it sure wouldn't be tied up in Europe. I like Shiff, I just don't agree with him on US vs EU.

RM

DaleFromCalgary
6th March 2010, 08:44
"If I had a lot of money right now to invest in equities, it sure wouldn't be tied up in Europe."

If I had a lot of money right now to invest in equities, it would be going into private-equity conventional oil (ownership of the oil or the cash flow from the wells), food producers, Canadian bank preferred stocks, and utilities. Most Canadians who have spare cash have it tied up in their house and operate under the delusion that they own an asset (see www.greaterfool.ca).

The advantage of the economic crisis being a slow-motion train wreck is that it gives you time to walk away from the impending wreck, study the scene at a safe distance, and choose a course of action. Those riding on the train do not have that luxury.

realmoney
6th March 2010, 08:53
"If I had a lot of money right now to invest in equities, it sure wouldn't be tied up in Europe."

If I had a lot of money right now to invest in equities, it would be going into private-equity conventional oil (ownership of the oil or the cash flow from the wells), food producers, Canadian bank preferred stocks, and utilities. Most Canadians who have spare cash have it tied up in their house and operate under the delusion that they own an asset (see www.greaterfool.ca).

The advantage of the economic crisis being a slow-motion train wreck is that it gives you time to walk away from the impending wreck, study the scene at a safe distance, and choose a course of action. Those riding on the train do not have that luxury.

I think your list is excellent. Those who are able to diversify beyond PMs would be well advised to follow it IMO.

RM