Final Word from Tuesday, April 19, 2011

It gives us no pleasure whatsoever to report that our prediction of a y-shaped economicslide backward in time appears to be coming true. The basic assumption ofthose who forecasted an L, U, V or W global recovery was that things wouldn't getworse, but this defied several laws of physics and common sense. S&P finally admittedyesterday, with a delay of 30-40 years, that the economic outlook of U.S. governmentdebt is "negative." That it took so long to recognize this is one of the most significantevents in modern history. It has allowed the Western world to reach a pointof no return. The main question now is whether financial collapse will come first, orwhether war will precede it. What can Czechs do? Get liquid, question everythingthey have ever been taught about how the world works, and put pressure on theirpolitical and business "elite" to take steps to at least mitigate what is to come.

Glossary of difficult words

y-shaped - meaning that the economy would first decline sharply (as it did in 2008), then return rather quickly to almost where it was before, and then begin a long, sharp decline;

slide - a gradual change to a worse condition or lower level;

to defy - to disobey or go against;

S&P - Standard & Poor’s, a rating agency;

outlook - prospect for the future (used by rating agencies to qualify their debt rating as either "positive," "stable," or "negative");

point of no return - the point at which it is too late to turn back or to correct a situation;

to precede - to come before in time;

to get liquid - to turn one’s assets into cash or other ready assets;

to mitigate - to make less severe, serious or painful.


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