Monday, June 29, 2015
Greece, Puerto Rico imminent defaults come together, maybe leading to a financial Hurricane Sandy, like Porter Stansberry predicts
There is a lot of talk today about the drop in financial markets because of the default in Greece. But there’s more, because Puerto Rico, as a US territory, is simultaneously getting attention because the likelihood of default, and, like a state, it cannot declare bankruptcy. The Puerto Rican situation could prove more dangerous to most US retirees living like parasitic Piketty “rentiers” (like me). I did cover the situation in Greece earlier today on the International Issues blog.
Robert J. Samuelson has a sobering article on p. A15 of the Washington Post Monday, June 29, 2015, “The next financial crisis?” link here. It considers developing countries like China as most likely to cause instability. Some right-wing economists have suggested that China, though, could call in US debt and undermine the dollar as reserve currency (the Porter Stansberry theory, supported now by Ron Paul, as discussed June 25 on my “cf” blog). The Washington Times often runs Stansberry’s material. Actually, Donald Trump may well believe this theory. “China is not our friend”. Neither was the tiger Richard Parker.
Yahoo Finance has two important articles today, one on whether US markets have enough “distance” from Greece, and another on Puerto Rico.