Debt, not money, is the root of all evil. Think about it for a second. Money is just a medium to pay off our debts. Money is just a piece of paper that derives its value from Perception. The perception of the Creditor (Seller) and the Debtor (Buyer). What do I mean by that? Well, let me give you an example. Almost every person in Zimbabwe is a Trillionaire, which is great, aside from the fact that a loaf of Bread costs upwards of 50 Billion Zimbabwe Dollars (that was way back in 2009). That is the perceived value of their currency. From the Creditors’ point-of-view, 50 Billion Z$ is only worth 2 loafs of bread. The point is, there are only 2 types of people in this world: The Haves (Rich) and the Have Not’s (Poor). Period. There is no 3rd category. And no matter where you live, or on which planet you live, the Haves always, I repeat, ALWAYS, will have the upper hand.
As long as there are humans, living together in a Civilized (?) Society, there will be Debt and there will be Debtors. There’s no escaping this reality. And one does’t need money for this relationship to exist. Back in the day, there was something known as a Barter System, where people exchanged actual tangible goods and services, in exchange for actual tangible goods and services. As we evolved and our population expanded, we created Coins, then Currency Note, and now just Digits on a Computer Screen (courtesy of Fractional Reserve System), to make the process of Buying and Selling more efficient. Credit, Loans, Leverage, are all derivatives of the Fractional Reserve System. And that my friends, is why we find ourselves in this Financial Mess. When a system (any system) allows one to BORROW more than one can AFFORD, the ultimate outcome is BANKRUPTCY. It’s just like musical chairs: When the music stops, someone is ELIMINATED. This same principle applies to both Individuals and Nations equally.
That brings me to the crux of this article: Beginning tomorrow, I will be posting a series of articles on the European Debt Crisis, focusing specifically on Debt, and the ability of the European nations to pay their Debt. The subject of these articles will be: Greece, Portugal, Spain, and Italy. I will carefully dissect every single economic variable for these nations, to arrive at a self-fulfilling conclusion as to which European Nation will be the next domino to FALL.