Wednesday, November 30, 2011
Place your bets ladies and gentlemen
Just a short post to add to the economic fire that's been going on for some 3+ years now. With the trappings of ministers and cabinet members and high level summits we've see all this before only now with a bit more educated eye.
Watch out for words like:
Decisive action = when we can get around to concocting an exact scheme
Conclusive action = It's never over until it's over and even then it's not over
Stability Union = a catchy phrase to make people feel good
Policy = What ever we can come up with that usually isn't part of the law
Financial constraints = figuring out a way to hedge the bet and make even more
Reforms = austerity programs only affecting the poor and middle class
Interesting to note that while the Euro countries trying to develop this bail out plan demand debt limits on the countries that are being bailed out, they are by this act creating more debt upon themselves by loaning the money. And in the process are borrowing most of the money to do it. But they are not satisfied with spreading the debt amongst themselves within the European Union. They plan to sell bonds on the open market. Ooow is this starting to sound familiar? Seem to recall some mortgage investments that were papered across the globe. And like the proverbial game of musical chairs whoever gets stuck with the worthless paper in the end looses.