Posted on 05/10/2010 9:16:58 AM PDT by george76
There will likely be a lot of thoughts to come with regard to the E.U.'s nearly $1 trillion package of bailout loans, but the most glaring issue is that, despite its enormous size and scope, Europe's new 'solution' misses the root of the Eurozone debt problem and worse yet could be amplifying it.
The underlying problem behind everything is moral hazard. So why are they rewarding it like never before?
The walls of fiscal and economic sovereignty are being breached.
No EMU country will be allowed to default, whatever the moral hazard.
Interestingly, Europe's debt crisis has thus been a boon for those who dream of a single European nation using the euro. It's now being forced to happen:
Europe's leaders have forgotten the lesson of the "Gold Bloc" in the second phase of the Great Depression, when a reactionary and over-proud Continent ground itself into slump by clinging to deflationary totemism long after the circumstances had rendered this policy suicidal. We all know how it ended.
(Excerpt) Read more at businessinsider.com ...
I firmly believe War’s a-comin’. It is looking like the only way out for some of these guys.
Bail away!
It means the Europeans are going to monetize their economies just like we’ve been doing. How much did the US contribute in cash and guarantees?
I wonder how much of the debt has been caused by the moslems who are sucking at the government tit....
Coming soon to a wallet near you.
The 50’s = MAD (Mutually Assured Destruction)
Now 10’s = MAED (Mutually Assured Economic Destruction)
When my father was alive, he use to say that when the world got over populated, jobs were scarce and the governments ran out of money..........war is the only answer. You may be on to something. It’s too bad we don’t listen to the elders.
I firmly believe War’s a-comin’.
I believe you are correct. It is the classic way of re-directing your citizen/subjects attention away from domestic problems and concentrating them on external “enemies”.
The Gods of the Copybook Headings
1919
As I pass through my incarnations in every age and race,
I Make my proper prostrations to the Gods of the Market-Place.
Peering through reverent fingers I watch them flourish and fall,
And the Gods of the Copybook Headings, I notice, outlast them all.
We were living in trees when they met us. They showed us each in turn
That Water would certainly wet us, as Fire would certainly burn:
But we found them lacking in Uplift, Vision and Breadth of Mind,
So we left them to teach the Gorillas while we followed the March of Mankind.
We moved as the Spirit listed. They never altered their pace,
Being neither cloud nor wind-borne like the Gods of the Market-Place.
But they always caught up with our progress, and presently word would come
That a tribe had been wiped off its icefield, or the lights had gone out in Rome.
With the Hopes that our World is built on they were utterly out of touch
They denied that the Moon was Stilton; they denied she was even Dutch
They denied that Wishes were Horses; they denied that a Pig had Wings.
So we worshipped the Gods of the Market Who promised these beautiful things.
When the Cambrian measures were forming, They promised perpetual peace.
They swore, if we gave them our weapons, that the wars of the tribes would cease.
But when we disarmed They sold us and delivered us bound to our foe,
And the Gods of the Copybook Heading said: “Stick to the Devil you know.”
On the first Feminian Sandstones we were promised the Fuller Life
(Which started by loving our neighbour and ended by loving his wife)
Till our women had no more children and the men lost reason and faith,
And the Gods of the Copybook Headings said: “The Wages of Sin is Death.”
In the Carboniferous Epoch we were promised abundance for all,
By robbing selected Peter to pay for collective Paul;
But, though we had plenty of money, there was nothing our money could buy,
And the Gods of the Copybook Headings said: “If you don’t work you die.”
Then the Gods of the Market tumbled, and their smooth-tongued wizards withdrew,
And the hearts of the meanest were humbled and began to believe it was true
That All is not Gold that Glitters, and Two and Two make Four —
And the Gods of the Copybook Headings limped up to explain it once more.
* * * * *
As it will be in the future, it was at the birth of Man —
There are only four things certain since Social Progress began —
That the Dog returns to his Vomit and the Sow returns to her Mice,
And the burnt Fool’s bandaged finger goes wabbling back to the Fire —
And that after this is accomplished, and the brave new world begins
When all men are paid for existing and no man must pay for his sins
As surely as Water will wet us, as surely as Fire will burn
The Gods of the Copybook Headings with terror and slaughter return!
I, I feel sooo HOPE-AFIDE and all CHANGEY inside.
Delaying the inevitable.
These actions will only impact the size of the debt burden that finally collapses our economy; less now, more later.
It means the Europeans are going to monetize their economies just like we’ve been doing.
If the US and Europe (and presumably Latin America) all do this in concert, the joke is gonna be on the ChiComs (and they are not going to find the punchline one bit funny)
I’ve read that Chinese GDP is decreasing and their real estate bubble is in danger of bursting. Is this true?
Old Rudyard was a gifted man.
said there would be a “world bailout” in ten years. said the IMF or World Bank would be set up as a global “Fed” to push a new, single currency with the purpose of “spurring prosperity.”
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