"In France, for example, everybody that I talked to told me that this year their business was down between 7% and 40% vs last year.  What they said was that business has been down every year now for the past 4 years.  But this year was down even more so than the previous 3 years.

So, Spain, which is a wonderful country, every other store is shut.  And when you talk to people, they are leaving the country.  They are going to Africa, to New Zealand, Australia, or whatever, because there are no jobs.  It's the same (way) in Portugal.


At the end of the day, how they resolved those issues in the 20th century, France devalued its currency six times. Well, now they cannot devalue because the Germans are the ones controlling the money. So, what are they going to do? What are the Italians going to do? You cannot bailout France, you cannot bailout Italy, they are too big.

At some point in the next 2 years you are going to have major, major issues. Their bond markets are going to backup big time, and they are going to say to these countries, `Enough is enough. We're not lending (you money) any more.' And then what are they going to do? If the Germans decide not to devalue, are they just going to go bankrupt?

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