If we step back from everything that is going on in the U.S., and in Greece and Europe, one can say that the endgame ultimately is devaluation of financial assets. It is almost as if these disruptive financial technologies enabled overproduction of financial assets. They increased productivity and they created oversupply, and that excess supply needs to be liquidated. But the liquidation is what governments don’t want to allow. So they are trying to support the prices of goods and services that have been overproduced, which are financials.
As long as confidence can be maintained in the underlying currencies, this game can carry on, but at some point it now seems inevitable that there will be an endgame. The conclusion from Simon Mikhailovich’s point of view should be read, bearing in mind this man is no gold bug but a derivatives expert with proven form in the field.