The Global Credit Crunch Is Just Getting Started
Raul Ilargi Mendoz
Jun. 2, 2012
As everything connected to Europe seemed to fall apart even before US jobs numbers were announced, and we could say I told you so a thousand times when it comes to debt deflation and crunching credit and the rise of the US dollar, but won‘t, there’s a piece by Jeremy Warner at the Telegraph that I think I should mention.
First, though, I see that Nassim Taleb says he’d much rather invest in Europe than the US. While I can see where he’s coming from, so to speak, I don’t think he’s from Europe. He talks about “a lot of fun currencies” that could replace the Euro, but ignores the potential battlegrounds that lie between the Euro and the European “fun” currencies that may or may not sprout from its demise. Down the line, sure, he may have a point, but it’s important to think about at what point he may have that point. The US dollar has some strength to come yet.