Paradigm Lost, The Euro in Crisis (great read)

The acute phase of the global financial crisis was short, lasting from the collapse of Lehman Brothers on September 15, 2008, to the day the Dow hit a trough on March 9, 2009. But, like a violent heart attack, the interruption of credit—the economy’s life blood—lasted long enough to permanently damage the industrial countries at the center of the crisis. The damage took three main forms, each of which poses a major risk to the stability of the global economy today: high and rising public debts, fragile banks, and a huge liquidity overhang that will need to be eventually withdrawn.

The Euro crisis, which strikes at the heart of the world’s largest trading block, contains only two of the three fateful elements—problematic sovereign debt in Greece and other vulnerable countries, and fragile European banks, which hold a large part of that debt. Monetary policy in the Euro area and in industrialized countries more generally, remains expansionary and, if anything, the crisis pushes back the time when tightening can occur safely. As a result of the problems in Europe, the world economy has become even more exposed to the three mega-vulnerabilities. The Deeper Causes of the Euro Crisis

While ballooning public debt may be the clearest manifestation of the Euro crisis, its roots go much deeper—to the secular loss of competitiveness that has been associated with euro adoption in countries including Greece, Ireland, Italy, Portugal, and Spain (GIIPS).

The sequence of events that led to the secular loss of competitiveness is depressingly similar among the GIIPS countries:

.....Maybe an economist can explain it to me,.....

I’m not an economist and don’t play one on TV but..... I think:

During the great depression, the powers that be insisted and got austerity. Tighten up. Hunker down.

The Keynesians led by Keynes were pissed that the could not get their desired policies of loose money, lots of money government spending implemented. FDR tried but not to the extent they considered necessary.

They have been waiting 60 years. They are now getting their chance.

In my view fail.

In my view the only solution is worldwide inflation to absorb all the debt

........ballooning public debt may be the clearest manifestation of the Euro crisis, but its roots go much deeper—to the secular loss of competitiveness that has been associated with Euro adoption in Greece, Ireland, Italy, Portugal, and Spain (GIIPS). The sequence of events is depressingly similar among the GIIPS........

...... ballooning public debt?......sound familiar?

Let's keep in mind that the border invasion, the push for amnesty, and the intl brouhaha over Arizona's new law are part of a plan to bring the US to the brink of a EU-like crisis that would help precipitate Reconquista----the latino takeover of US territory.

REFERENCE Juan Hernandez, Fort Worth, a dual citizen of the US and Mexico, past member of Vicente Fox’s Mexican govt, and 2008 candidate McCains' Hispanic Outreach Coordinator (McCain said he chose Hernandez because he agrees with his positions). McC sucked up to amnesty-pusher Hernandez (as Americans woke up to 5 million toxic mortgages fraudulently doled out to illegals that poisoned our economy forever).

Hernandez, a US citizen, actually served as a Mexican Government's cabinet member and headed the govt's Bureau of Mexican Living in the US that protects the invaders' interests. Hernandez was also Vicente Fox's "American Reconquista Director." So you know where he's coming from.

Hernandez stated on national television that he is for organizing the North American Union, and the “Amero” to replace the dollar within 10 years or so.

Hernandez believes all illegal Mexicans and Mexican-Americans in the USA should become dual citizens and consider themselves Mexicans first, "to the 8th generation." Hernandez' book urges illegal alien invaders to become settlers in the USA for Reconquista---the Mexican plan to take back the SW.

Invaders sign itemizes why they are against Arizona's law. (Phoenix Capital protest, May 29, 2010).

Hernandez actually served as a cabinet member in the Mexican Government. Juan Hernandez was born in Dallas and decided as an adult to become a dual-national Mexican citizen. His last verifiable job was serving in Mexican President Vicente Fox's cabinet as Vicente Fox's "American Reconquista Director." Hernandez then worked for Bush hater George Soros' international foundations---(one such foundation published Hernendez's book that taunts Americans).

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Michele Malkin article April 29, 2010-----Mexican Dual citizen Juan Hernandez, Fort Worth, has put together Conservatives for Comprehensive Immigration Reform ...... described as a “loose coalition” of conservatives started about a year ago to have a private conversation about immigration reform.

Conservatives for CIR is going public. A number of evangelical and business leaders were on a conference call, including former Bush 43 Commerce Secretary Carlos Gutierrez and the Rev. Samuel Rodriguez, president of the National Hispanic Christian Leadership Conference. Former Florida Gov. Jeb Bush was supposed to be on the call, but he had a conflict.

SOURCES http://dallasmorningviewsblog.dallasnews.com/archives/2010/04/yes-there-are-c.html

michellemalkin.com/.../john-mccains-open-borders-outreach-director-the-next-dhs-secretary/

Bush’s “Ownership Society”......nothing’s changed....they STILL give out mortgages to the ‘disadvantaged’ and bailout the one’s who can’t pay.

You got that s-o-o-o right.

The subprime mortgage meltdown is attributed to illegal invaders fraudulently getting loans with stolen identities; if they could breathe and make an X on the app, they got a mortgage, no questions asked. The conniving illegals then flipped the mortgaged houses among relatives at higher and higher prices.......the last relative absconds to Mexico with loads of cash, leaving banks (and taxpayers) holding the bag.

CASE IN POINT A TV documentary "House of Cards" showed an illegal who could not speak English, who mowed loans for a living, getting a sub-prime mortgage for a posh California property worthy of a multi-millionaire. Of course he defaulted----the illegal had lied about his income on the mortgage application and could not pay up.

REFERENCE Financial Bust Connected to Illegal Alien Mortgages
Human Events | October 5, 2009 | William Campenni
FR Posted by machogirl

......the new alchemists: mortgage bankers and investors. They found a way to turn worthless mortgages into hordes of gold. Or at least they thought they had

There were other factors that contributed to the collapse of the credit markets. Low interest rates by the Federal Reserve, lowered standards by FannieMae and FreddyMac, securitized mortgages (derivatives and collateralized debt obligations -- a real alchemic brew), the machinations of Barney Frank and Chris Dodd, the Community Reinvestment Act, Alan Greenspan, and so forth. etc. But of themselves, and even in concert, they could not have brought about a collapse of the magnitude that ensued.

So what supplied this quintessential element? It was the opportunity to exploit the sudden and coincidental housing needs of millions of illegal aliens with subprime mortgages.

The grand schemes and diabolical financial instruments would otherwise lie fallow without a huge base of mortgages to hold up the Ponzi pyramid, and the new market of the 12 -- more likely 20 -- million housing-starved illegal alien populace was the ripe, low hanging fruit. (Excerpt) Read more at humanevents.com.

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Yes, the banksters and Congress messed up. But there's a secondary problem----the secularization of the culture--- wherein moral certitudes and the Golden Rule were tossed aside in favor of self-absorbed individuality. At one time, getting a mortgage was considered a moral obligation----mortgage-holders took on the responsibility; they budgeted and had second jobs in order to pay their obligations.

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As FReeper raybbr postulated: "the invaders' sense of entititlement to tear down our government while enjoying US prosperity, the principles of democracy, our legislative process, and our thriving society is an affront to every real American."

"The Keynesians led by Keynes were pissed that the could not get their desired policies of loose money, lots of money government spending implemented. They are now getting their chance."

They have been practicing their chance since the socialists were validated after WWII. Afterall, Uncle Joe got more credit for liberating Europe than the USA. And what did McArthur institute in Japan?

The Keynsians practiced their distributions and money printing while everyone had their own printing presses. That didn't work so they tried one last gasp, (after ECU, EU) the euro (EMU).

They are now in the death throes of the "euro disease", SOCIALISM

yitbos

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