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Spain: The poison of left thinking
The yield on Spanish debt surpassed 7,5%. At the same time some Spanish regions are preparing to request a government aid. I.e. to ask for more money from lacking it government. It is obvious that Spain will be the fifth country to ask for EU help, after Greece, Portugal, Ireland and Cyprus. It is not clear if the EU bailout funds will be enough for Spanish needs.
Read more...Who is the real Libor manipulator?
Will you save and keep money in bank in exchange for 0,25% annual interest?
Will you invest in government debt for 1-2% annual interest?
Will you invest in a de facto bankrupted debtor in exchange for 7% interest?
I can ask tens of such questions, but these 3 are enough to be asked at the current moment of exploding "libor-scandal" that is to decapitate some of the most important CEO-s in bank-world.
Why these 3 questions are important?
The answer is very simple - because they point to the real and most dangerous interest manipulator in last decades. A manipulator that is not under investigation. A manipulator that can manipulate absolutely legally and call this "policy".
A time to fire John Law from ECB
If you open Wikipedia on John Law page you can read the following:
"...Law proposed to stimulate industry by replacing gold with paper credit and then increasing the supply of credit, and to reduce the national debt by replacing it with shares in economic ventures. Though they failed, his theories ironically live on 300 years later and "captured many key conceptual points which are very much a part of modern monetary theorizing"...
Today almost all central banks of the developed countries operate on the principles formulated by John Law. But as we remember, Law's experiment caused one of the biggest financial catastrophes in history. So will the result today be different?
Another step towards the crash of the Euro
Euro-zone has made a new step towards disintegration, once Germany decided to step back from another principle of stability of the euro. It is clear that step by step the euro becomes a piece of paper, and Germany will apparently return to the Deutsche Mark. This is the only way - the euro devalued will stay as currency for lazy nations. For Germans and other solid and industrious countries - a Deutsche Mark and some clones of it. Later, the lazy nations will understand they are losing their standard, and they need Marks and not Euros. But with no common currency they will have fewer reasons to ask to be saved...
Read more...Greece to outplay the stupid europeans again
For 3 years up to now Greece is doing exactly one and the same thing - simulation of reforms and periodically inventing new reasons of not making reforms. These reasons are of so called "inevitable" type and require stepping back from promises given to international donors that finance the bankrupted country.
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