02/12/10 Stockholm, Sweden – A wide-ranging research newsletter on the “sovereign time bomb” released today covers topics including hyperinflation, deflation, bond, gold, and its perspective on the government’s role in creating the financial crisis. Matterhorn Asset Management believes governments “will not abandon further credit expansion.”
From the newsletter:
“In our view, governments like the US and the UK and many others will not abandon further credit expansion. They are committed to printing increasing amounts of worthless paper money in order to finance the growing deficits and the rotten financial system.
“Therefore there is no chance of Quantitative Easing ending but instead it will accelerate in 2010 and after. The consequence of this will be a hyperinflationary depression in many countries due to many currencies becoming worthless. No economy in the world, including China, will avoid this severe economic downturn which is likely to have a major impact on the world economy for many, many years to come.”
This post came to our attention via the ChrisMartenson.com, and you can visit Matterhorn Asset Management to read the worthwhile coverage of how sovereign alchemy will fail.
Rocky Vega
Rocky Vega is publisher of The Daily Reckoning. Previously, he was founding publisher of UrbanTurf and RFID Update, which he operated from Brazil, Chile, and Puerto Rico, and associate publisher of FierceFinance. He specialized in direct marketing at MBI, facilitated MIT Sloan School of Management programs, and has been featured on CBS. Vega graduated with honors from Harvard University, where he was on the board of Let’s Go Publications and directed business programs involving McKinsey, Goldman Sachs, and Harvard Business School faculty. He is also enrolled at the Stockholm School of Economics.
The Daily Reckoning is your premier source for making sense of the news Washington and Wall Street generate. Each business day, The Daily Reckoning calls on its stable of world-class writers and thinkers to show you how to get ahead.
Start your 100% FREE subscription to The Daily Reckoning today and you’ll get a free research report, “How to Survive the Fall of Social Security.” Simply enter your email address below to get your free report and join over 495,000 worldwide Daily Reckoning subscribers!
We Respect Your Privacy and We will
Never Share or Sell Your Email Address
Stop the credit expansion? Do you think they have a choice? The PTB have chosen a course on a one-way street with no stop signs. Problem is that is a dead end and they are accelerating.
The inevitable, ugly end to this scenario is not some brilliant prediction and someday, perhaps sooner rather than later, the crash victims will pay dearly for the trip.