“I believe that the expansive monetary policies underway globally can only serve to fuel speculative activities at this point. Of course, more speculation is exactly the opposite of what is required – someone has to produce something and production requires genuine capital. But since the needs of the political and banking classes largely dictate monetary policy what might we expect in the future? Clearly the sovereign defaults that are underway will not improve bank balance sheets. Therefore, I think we should anticipate additional monetary expansion (bailouts) which is just another way of saying currency devaluation. If history is a guide, the monetary steps that are being taken to “solve” the unfolding sovereign solvency crisis may only serve to morph it into a fully fledged currency crisis with a flight out of financial assets. Do we really want to experience this on a global scale just like the fools Erasmus had in mind?”

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