More from the IMF: "The external position of the Euro area
as a whole has been close to balance, and only slightly weaker than the
estimated value consistent with fundamentals and desirable policies. However,
this masked, and continues to mask, substantial divergences across the Euro area
primarily financed from within the union, including by major banks with global
links. Germany currently has the world’s second largest current account surplus,
partly with the rest of the world, while Spain and (to a lesser extent) Italy
have deficits. Major estimated external imbalances that are regionally-financed
imply a need for substantial real and financial rebalancing within the Euro area
as well as a much more modest rebalancing by the bloc with the rest of the
world. Unsustainably large intra-Euro area imbalances were part of the global
boom-bust cycle, and the failure to resolve the Euro area crisis is causing
heightened stresses that are spilling over to other countries". -- Germany
is doing OK though, and have done since the Eurozone was created. No wonder
Merkel wants to preserve the status quo. The eurozone is on life-support, it
won't be long before the apparatus is switched off, but by then millions of
people in Spain, Portugal, Ireland, Italy, Greece et al will have had their
lives ruined by arrogant, stubborn eurocrats. ..... What's the youth population
of Europe? Say, around 100 million people (depending on how you define youth) of
which roughly 20 million are unemployed. Now take the quantitative easing (QE:
new money printed and issued, a taxpayer liability) amounts given to the banks,
and the other forms of money given to them in bank bailouts. £375 billion and
counting in the UK. Don't have close to hand, the QE, bank bailout, and other
monetary relief sums for the bad debt of banks given to Spain, Italy, Greece,
Ireland, and Portugal. Let's take a conservative estimate of a total of £600
billion: divide this by 20 million and you have £30,000 per unemployed youth.
The new money printed and issued by European governments if given directly to
the public instead of the banks would certainly wipe out unemployment for at
least a year or two. That would be even truer for the Non-Euro Countries,
forget about the rest of Europe. But we the public are such stupid, apathetic
sheep, we play along with this massive misdirection of financial resources by
the states, done for the banks, at your cost.
Access Investments-Building Awareness - European Union-ROMANIA
Friday, August 3, 2012
More from the IMF: "The external position of the Euro area
as a whole has been close to balance, and only slightly weaker than the
estimated value consistent with fundamentals and desirable policies. However,
this masked, and continues to mask, substantial divergences across the Euro area
primarily financed from within the union, including by major banks with global
links. Germany currently has the world’s second largest current account surplus,
partly with the rest of the world, while Spain and (to a lesser extent) Italy
have deficits. Major estimated external imbalances that are regionally-financed
imply a need for substantial real and financial rebalancing within the Euro area
as well as a much more modest rebalancing by the bloc with the rest of the
world. Unsustainably large intra-Euro area imbalances were part of the global
boom-bust cycle, and the failure to resolve the Euro area crisis is causing
heightened stresses that are spilling over to other countries". -- Germany
is doing OK though, and have done since the Eurozone was created. No wonder
Merkel wants to preserve the status quo. The eurozone is on life-support, it
won't be long before the apparatus is switched off, but by then millions of
people in Spain, Portugal, Ireland, Italy, Greece et al will have had their
lives ruined by arrogant, stubborn eurocrats. ..... What's the youth population
of Europe? Say, around 100 million people (depending on how you define youth) of
which roughly 20 million are unemployed. Now take the quantitative easing (QE:
new money printed and issued, a taxpayer liability) amounts given to the banks,
and the other forms of money given to them in bank bailouts. £375 billion and
counting in the UK. Don't have close to hand, the QE, bank bailout, and other
monetary relief sums for the bad debt of banks given to Spain, Italy, Greece,
Ireland, and Portugal. Let's take a conservative estimate of a total of £600
billion: divide this by 20 million and you have £30,000 per unemployed youth.
The new money printed and issued by European governments if given directly to
the public instead of the banks would certainly wipe out unemployment for at
least a year or two. That would be even truer for the Non-Euro Countries,
forget about the rest of Europe. But we the public are such stupid, apathetic
sheep, we play along with this massive misdirection of financial resources by
the states, done for the banks, at your cost.
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2 comments:
Draghi`s actions strike me as a bid for power, raising the
markets expectations then falling short of delivering and leaving the seniority issue in abeyance will only add more pressure to Spain and Italy’s bond yields.
He is deliberately forcing them down the bailout route. Once they request bailouts, Germany is forced to commit one way or the other, if they commit to supporting the ECB
buying bonds and QE then they are trapped.
Draghi then controls the purse strings of the EZ and whoever controls the money controls the politicians and hence the future of the EZ.
The end game approaches, Spain and Italy are
trying to get the rest of the EZ to bail them out without conditions, if this happens Spain & Italy will have the power because the EZ countries would be committed to bailing them out for ever with no control.
Germany wants to drip feed Spain & Italy with the Bundesbank in control of issuing any new bonds or QE, it wants Spain & Italy to concede sovereignty and become dependant on Germany’s handouts, like Greece etc.
The ECB is trying to make itself the unelected and uncontrolled issuer of the euro, similar to the Fed, if this happens it will control the future of the EZ.
It is and always has been about power and not about the prosperity of the people of Europe, will someone win or will the whole thing be blown apart.
September looks like crunch time and we may be looking at a financial 9/11
Draghi was revealed in all his glory - bankrupt and emasculated with the words of the Bundesbank stamped across his forehead - 'no banking licence and no debt mutualisation'.
His secret weapon was as secret as they come because it doesn't exist and, until 12th September, he doesn't even have a topic unless he starts telling us all about bumblebees again.
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