Europe: Ticking Debt Bomb?

[Professor S]

Do you have any worries that this could lead to a systemic contraction in the world economy? My concern is that it will greatly impact the European Union, and with how all advanced economies are so interconnected we could see a double-dip recession. Am I being paranoid?

[Bond]

Originally Posted by Professor S

My concern is that it will greatly impact the European Union, and with how all advanced economies are so interconnected we could see a double-dip recession. Am I being paranoid?

Highly unlikely. To see a double-dip recession would require governments to stop propping up the bad debt. That would be far too politically unpopular to do, so I don't see that scenario playing out at all.

However, I do think we are going to see major currency inflation in the near-to-mid future, which will be a purely political and not economic move.

[Professor S]

Originally Posted by Bond

However, I do think we are going to see major currency inflation in the near-to-mid future, which will be a purely political and not economic move.

So you're saying "Invest in Gold"...

[TheSlyMoogle]

GOLD? GOLD RUSH?!

HOLY SHIT WE CAN BE 49ers NOW?! ONLY WE'LL BE LIKE 10ers?! HOLY SHIT!

I'LL START FARMING GOLD RIGHT NOW!

*Plays WoW*

[TheGame]

Originally Posted by Bond

However, I do think we are going to see major currency inflation in the near-to-mid future, which will be a purely political and not economic move.

I'm suprised the inflation hasn't started given how out of control debt is.Right now is the time to buy solid things like houses and cars, and not the best time to save.