Turbo Tax Timmy (T3) is on the case. Sorry Europe!
They listen closely to him - just look at what he has accomplished in America.
Posted on 09/25/2011 1:53:55 PM PDT by Comparative Advantage
Europe, the G20, and the global authorities have one last chance to contain the EMU debt crisis with a nuclear solution or abdicate responsibility and watch as the world slides into depression, endangering the benign but fragile order that has taken shape over the last three decades.
The threat of cascading default, bank runs, and catastrophic risk must be taken off the table," said US Treasury Secretary Tim Geithner over the weekend.
"Sovereign and banking stresses in Europe are the most serious risk now confronting the world economy. Decisions cannot wait until the crisis gets more severe."
Euroland's dysfunctional arrangements are no longer a local affair. As the European Central Bank's Jean-Claude Trichet said in Washington, EMU is at the epicentre of a global sovereign debt crisis that risks engulfing all, and is more intractable than 2008 because governments themselves are now crippled.
China, India, Brazil and the world's rising powers will not escape lightly this time if leaders let events spiral out of control. European banks have lent $3.4 trillion to emerging markets (BIS data), or three quarters of external loans to these countries.
The International Monetary Fund warned last week that emerging markets face the risk of "sharp reversals" or even a "sudden stop" if there is further spill-over from Europe. This comes at a time when Asia and parts of Latin America are already in the topping phase of a credit boom, one of epic proportions in China where loans have doubled to almost 200pc of GDP over the last five years.
(Excerpt) Read more at telegraph.co.uk ...
“Delaying the day of reckoning just ensures the final collapse will be bigger than if they fixed things now.”
You’re not supposed to give away the ending! ;>
True, though.
“contain the EMU debt crisis with a nuclear solution”
Yeppers. That’ll do it.
There is only one solution here - stop printing so much money and force governments to learn to live within their means. So far, the approach has been akin to treating a heroin junkie with methadone - at the end of the day, you still have an addict and the methadone has its own nasty side effects.
Geithner!!??? That's sad. It means Europe and the US are hosed!!
Turbo Tax Timmy (T3) is on the case. Sorry Europe!
They listen closely to him - just look at what he has accomplished in America.
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