Gyroscopic Investing

http://youtu.be/9o30gNfPq_k

A sobering outlook on the future. Agree with him or not, he is clearly no dummy. For the record I am inclined to at least in part agree with his pessimism. I hope that I am wrong.

To be honest, I tuned out when he started talking about Japan defaulting. Currency issuers don't default! All this doom and gloom must really keep him up at night. I suggest 50 CCs Permanent Portfolio, stat!  Either that, or a funny YouTube video: https://www.youtube.com/watch?v=WcU4t6zRAKg

I think you missed quite a bit. I don't recall him predicting any overt default by any of the major countries. What he was predicting was the sort of covert default that occurs with debt monetization. Beyond the rather pessimistic economic forecast though the interview covered a lot of fascinating topics.

I am starting to think debt monetization is not the "covert default" we make it out to be any more than a ref blowing a whistle is delay of game.

If paper money issued and given value by government is abstract in nature and of no intrinsic value, why should a bond be any different, when issued by the same entity denominated in the same currency??

It's confetti for confetti.  Monetization of debt is built into the game called fiat currency issuence.

I'm playing the inflation card too. I currently have 25% of my assets in gold.