The Irish and Portuguese are taking a different root, they have so far agreed to take on the debts that went bad and should have been defaulted. They have subjected their citizens to 15-25 years of hardship and will have nothing to show for it except their pride. At some point in the near future, they may come to their senses and go the Greek route but that is a 50/50 proposition at this point.
How will this play out?
- Greek leave the Euro – They will revert back to the Drachma which will drop 50-60% in value. The Greek people will experience hardship for 5-7 years until they adjust to the realities of simple living and paying taxes.
- Ireland and Portugal – will take the long road to recovery but will eventually succumb to the reality that they should have allowed risk takers to fail. They will not recover anytime soon until they default on the debt or leave the Euro.
- Italy – it is simply too big to fail. They will try austerity for a while but they will eventually implement capital controls and or force their pension plans and citizens to buy more Italian debt. They will do everything they can to stay in the Euro.
- Gold will be the preferred investment, expect to see appreciation of 8-15% per year for the next 5-7 years before the debt clocks are reset, the Euro unravels, the U.S. is forced to deal with its debt as is the case in Europe.
- It will not matter which political parties are elected, they will all face the same fate. Voter retribution. The people will Awaken and will come to understand their elected officials were not representing them, they were bought and paid for by Wall Street and Big Business. They will toss them all out and a new political force will arise to lead the next global recovery.