Eric Fry, editor of The Daily Reckoning, has been calling for Greece’s inevitable default, as well as those of other European nations without fear. He joined Lauren Lyster of RT America’s Capital Account to remind investors that a default is “not the end of the world.”
“At the end of the day, you’re going to end up with a far worse situation than if you let bankrupt government fail and let new investors come in to start from scratch,” Fry said. “Iceland failed… it wasn’t the end of the world, it wasn’t the end of Iceland.”
He added: “This is one more example of government incompetence. This is a 13-year experiment with a lot of PhDs behind it. Governments borrowed too much, now they should go broke. Instead of letting that happen, and letting the private sector do its work, these highly educated people are trying to meddle.”
While Greece may be the first country to default, Fry suggests that more countries will – and should – follow in suit. “We have all made promises well beyond our capacity to fulfill them in any legitimate economic way,” he said. “The only way out is to print money – which the United States has chosen to do – or to default. Any eighth grade math student can draw the line and know that it’s not going to work. I predict a default of more countries than Greece. Greece will be first, but I believe that Italy, Portugal and Spain will all default.”
Fry and Lyster also dedicated some time to the overreaching of government into matters of civil liberty.
“Gone is the ancient idea, enshrined in the constitution, of due process or civil liberties,” Fry said. “Now what we have is a government that sees civil liberty as an inconvenience. Government is behaving in a way that says ‘we know better,’ when in fact they don’t.”
“We have always had forms of government brutality or regulation that has annoyed the citizenry. So this is not necessarily a new story; but it only becomes a new and important story when it looks like it’s a national expression rather than at outlier.”
“Now you’re seeing in a variety of agencies – FBI, CIA, IRS, TSA, all down the line to the local police – a kind of brute force militarization of the ‘we know best’ policy that has become enshrined. What that means is that the guy just trying to make a buck doesn’t know which is the real law: the one in the municipal codes or what some government agency feels is the law for the moment. That leaves most entrepreneurs and business throwing up their hands.”
Read more about Eric Fry.
View the full episode from RT America.
