Golden Matrix Group Inc (GMGI)

[Kgem]

Fellow Source Gold Corp. (SRGL) investors --- I appologize in advance if this is getting a little preachy --- that is not my intention.

I suspect Americans will walk in the same footsteps as Europeans, and possibly sooner than anyone imagines. That's the nature of financial crises: they tend to sneak up on you when you least expect. Unfortunately, how we handle our own version of this sovereign debt crisis will probably look a lot like how Europe is handling their crisis now.

And over the weekend, as you may know, the Euro zone finance team of wizards agreed to lend heavily indebted Spaniards up to 100 billion euros (around 125 billion dollars).

Just take a minute and think about that... in order to solve Spain's debt problems... Spain borrowed even MORE money.

On the face of it, purely by knowing what we all know about debt and how to get out of debt it's clear that 100 billion euros will not be enough. We also know that you can't borrow your way out of debt. I'm not being glib here - it's no secret that debt is a lousy cure for an already insurmountable debt. We also know that all this will really do is prolong the situation --- in the hope that somehow everything will work out okay.

Perhaps even more shocking... Spain is STILL RUNNING DEFICITS, even while we speak.

This year, even with huge amounts of "austerity," Spain's leaders expect to add 6% of GDP to their deficit, and are now willing to borrow even more money to keep this pace up.

Faced with the choice between true austerity and more debt - Spain chose more debt. I expect that American leadership will have to make similar choices as well. And I firmly believe American leaders will make the same choices as Spain's leaders.

Of course, since no one actually has any money to lend any more, I suspect (I am even willing to bet) that these so called leaders will print paper money backed by only the word of the government.


Kgem