are only beginning to see the results of ECB's dramatic increase in the money supply. http://venitism.blogspot.com
Most of the euro deposits created by ECB via successive rounds of quantitative easing remain on the balance sheet of ECB and the European central banks of eurozone. Because of very rational economic fears, banks are not lending, businesses are not expanding, and individuals are shedding debt. So, the trillions of euros
created by ECB remained largely undeployed. When those euros
eventually make their way into the world economy, prices across all sectors of the economy are likely to rise dramatically.
Geithner asserts eurozone must take steps including bringing down interest rates in the countries that are reforming and making sure those banking systems can provide the credit those economies need. Geithner would like to see ESM bring out the bazooka, in other words, undertake massive purchases of government bonds to resolve the crisis.
An ESM bazooka cannot restore competitiveness to PIGS, but would only encourage profligacy, kleptocracy, and metastasis of the cancer of socialism. European Stability Mechanism (ESM) is a joke. ESM's finances depend on the very same countries that it is supposed to bail out. This isn't stability, but a Ponzi scheme!
PIGS are losing access to credit markets as bond yiels have gone to the moon. The three largest credit rating agencies (CRA) – Moody's, Standard & Poor's, Fitch – are ready to downgrade the four PIGS again. PIGS have been spending more than they've earned for decades. But the Germans have enjoyed particularly good earnings from the profligacy of PIGS. Cohesion policy is a socialistic scheme to rob hard-working Northern Europeans to give lazy pigsizens. But Northern Europeans resent supporting the dolce vita of pigsizens. The freakish government of Greece stole my computer and my life! Draghi promises ECB would do whatever it takes to preserve the euro.
Geithner says: What you know, from what Europe has said, that they are committed to doing what's necessary to hold the Europe Union together. I absolutely believe they have the means to do it. Past financial crisis showed that the longer it took to address the issues, the more they cost. I believe they understand that. That's why they've signaled they are prepared to move further. Now again, this is going to take time.
Monti says Italy does not need an assistance program but it might in future need a breathing break from high interest rates. All pigsizens demand dolce vita, all evade and avoid taxes, all hate government, and many respect omerta. Pigsizens prefer to detach themselves from reality. One can do that for a while, but now the capital markets are suggesting those days are over. Either you face up to
reality or you will be punished.
The Karlsruhe German Constitutional Court will decide the legality of ESM and fiscal compact in a ruling due on September 12. Christoph Degenhart points out the ratification of ESM Treaty and Fiscal Compact would lead to massive interferences against the Bundestag's right to adopt the budget and thus against the central powers of a representative body of the people which is legitimated by elections. The constitutional complaint is based on each citizen's democratic fundamental right according to Article 38.1 sentence 1 of the Basic Law (German constitution) in connection with the democratic principle of Article 20 of the Basic Law: Article 38.1 sentence 1 guarantees the right to elect the members of the Bundestag as a fundamental democratic right of citizens.
However, this voting right would lose its substance if the Bundestag, which was elected by the voters, was limited to making only irrelevant decisions, in which case the act of voting would become meaningless. Consequently, citizens do not only have the right to elect the Bundestag in general, direct, free, equal and secret elections, but also the right to elect a parliament which is vested with substantial powers.
VAT is killing the goose that laid the golden eggs. VAT is the major culprit of depression, the #1 source of misery. VAT is the cacothanasia of economy! Vatdodging is heroism! If you are a real patriot, you should revolt against VAT, buying products online from companies that evade VAT. Remember, your government is your worst enemy! The freakish government of Greece stole my computer and my life! The largest online retailers offer top quality products at deep discounts without VAT. Only stupid consumers pay VAT! Some fantastic VAT-free offers are on the venitism blogspot. http://venitism.blogspot.com
New data showed capital fleeing banks of four PIGS at a growing rate. What PIGS are experiencing at the moment is a shock and awe. But it was also overdue. The freakish government of Greece stole my computer and my life! PIGS are not innocent when it comes to their decline. But providing PIGS with extended maturities and lower interest rates is in no way a true solution. PIGS need restructured debt in order to have a little breathing room.
Bundesbank president Jens Weidmann used to be one of Merkel's closest advisers. Now, he is one of her staunchest critics over the euro rescue. He is strictly opposed to the European Central Bank's policy of buying up bonds from debt-stricken countries and is winning a growing number of allies for his cause.
ECB and Bundesbank lock horns on all issues. Draghi met Weidmann privately earlier this week to try to reconcile differences on what action the bank might take. Northern Fourthreichians have the strong suspicion that some of their hard work
is going down the drain with the hundreds of billions that are currently
disappearing into aid packages and bailout funds for PIGS, lived well at the
expense of others, and that those who were more careful with their money are now
expected to swallow the poison that is making its way northward.
Weidmann has criticized decisions related to the ESM Ponzi scheme and other bailouts as inconsistent and highly risky. He has called on politicians in Berlin to change their course, and he has been advocating the Bundesbank's principles regarding stability. All of those things put him at odds with top officials at the European Central Bank (ECB).
http://venitism.blogspot.com
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