naked capitalism Sat 2010-04-03 09:55 EDT
Guest Post: Top Analyst Says ``Developed Market Governments Are Insolvent By Any Reasonable Definition''
Dylan Grice, a top analyst for European financial giant Société Générale, writes: Developed market governments are insolvent by any reasonable definition. Who could have known? Everyone, actually...Grice also says: Eventually, there will be a crisis of such magnitude that the political winds change direction, and become blustering gales forcing us onto the course of fiscal sustainability. Until it does, the temptation to inflate will remain, as will economists with spurious mathematical rationalisations as to why such inflation will make everything OK . Until it does, the outlook will remain favorable for gold. But eventually, majority opinion will accept the painful contractionary medicine because it will have to. That will be the time to sell gold.
developed market governments; Guest Post; insolvent; naked capitalism; reasonable definition; Top Analyst Says.