It’s your choice, Europe; choose wisely.

13:21 6/12/2011 - Πηγή: Olympia

It’s Your Choice, Europe: Rebel Against the Banks or Accept Debt-Serfdom

It’s really this simple, Europe: either rebel against the banks or accept decades of debt-serfdom.

The euro

enabled a short-lived but extremely attractive fantasy

But the whole set-up was a doomed financial fantasy.

Put another way: risk and debt were both massively mispriced by the illusion that the endless growth of debt-based consumption could continue forever.

But now reality has repriced risk and debt, and the clueless leadership of the EU is attempting to put the genie back in the bottle

In simple terms, this is the stark reality: now that debt and risk have been repriced, Europe’s debts are completely, totally unpayable.

Austerity won’t put the repricing/bubble burst genie back in the bottle.

This is called a positive feedback loop: each action reinforces the other, i.e. a self-reinforcing feedback loop.

So you see, Europe, there is only one choice: either accept the endless debt serfdom of ever-rising interest payments and lower income and productivity, or rebel against your pathetic lackey leadership and renounce the entire mountain of unpayable debt.

Let the banks implode in bankruptcy, clear the worthless "assets" of debt from the books, and let the market price currencies and everything else.

All the other schemes and proposals are simply variations of one single fantasy: that the feckless leadership can fool the repricing genie with parlor tricks.

It’s your choice, Europe; choose wisely. If you want a model for sanity and growth, look to Iceland. They renounced their unpayable debts and debt-serfdom, and let the market reprice their currency, debt and risk. The nightmare is past for them; they chose wisely. Now it’s your turn to choose.

The debt-serfdom will fall to you, not the banks or your Elites.

Never mind actually paying down debt, sovereign, corporate and private–the repricing of risk and debt mean even the interest payments are unpayable. Consider this chart of one tiny slice of total EU debt:

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