Gonzalo Lira: If Greece Defaults, What Happens to Portugal and Ireland—and Spain?

Gonzalo Lira outlines why Greece matters. In a word, contagion. Contagion is the Achilles heel of all debt Ponzis. A little debt default here and there is no problem when there there is debt capacity remaining and to be realized. But, when debt saturation is the reality, debt defaults cause other debt defaults from counter-parties who depended on showing the defaulted debt as an asset on their balance sheets. The result is a catastrophic loss in confidence of current and potential debt holders. The holders panic and try to unload the debt as fast as they can while it still holds some value. The potential debt buyer holds his nose and says “pee yoo” and withdraws his bid, vacating the market to the the scavengers who want to roll the bones and pick the rotting carcass for a quick speculative trade.

The entire global debt paper Ponzi can come undone in a matter of hours. Yes sir, shit, meet the fan.


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One Response to Gonzalo Lira: If Greece Defaults, What Happens to Portugal and Ireland—and Spain?

  1. Craig Jones says:

    This is only my opinion and that of Pastor Linsey Williams:

    I think they want a default from Greece, which will launch Spain, Ireland, etc. Ultimately they will come to U.S. and we will have a real excuse as to our default. There will be no need for QE 3 as we will default, the World will have a problem trading. This could help initiate a World War to disquise everything and people in the World will demand a new Gold/Silver backed one world currency (or at least a regional one). In this case most people will be broke forever.

    Be ultra conservative, buy and hold physical precious metals like Gold and Silver. Lindsey Williams says the Illuminati plan says default and dollar devalued considerably by end of 2012. In the middle east you will have Syria and Jordan fall on the heals of Yemen. Saudi will be last where the royal familiy will be kicked out and oil will go to $175-$200 per barrel. Finally we will tap into our domestic rich oil fields in Alaska and the West (which was the 40 year plan all along). There is no going back for them now. Lets see how accurate Williams is on this prediction. He has been spot on for 5 years so far.

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