And, So It Goes. Russia Is Effectively Bankrupt. China Is Next.

The G20 meeting on the financial crisis is this Friday. One should hold no confidence that this will accomplish anything. Why? The state has created this crisis. They aren't going to fix it. We will fix it. We being the cumulative minds and efforts of individuals. And, since most countries do not embrace the cumulative minds of individuals, their chance of recovery is nearly impossible. Not the collectivist state working together with the peer creators of this crisis.

Don't believe in the current united front put forth by global central planners and politicians either. That position will clearly erode over time as sovereign interests begin to outweigh positions of harmony and cooperation. The current myth perpetrated by the media that coordinated efforts to save the global economy are unprecedented is another fallacy. We have seen these coordinated efforts before. And, when the going gets tough the tough turned to self-interest and policies of statism. In other words, expect volatility between the states to increase substantially.

Russian stocks imploded today on news that the government will likely trash its currency. Why? Because it has no money. The great race to the bottom of the barrel is entering a new phase. Oh, and when might you ask was the last time this happened. Funny you would ask. That would be 1929. Globalization is dead. But, then we said this would happen.