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Friday, October 21, 2011

So Busy I Don't Have Time To Sleep

Much less blog. Sorry.

This European thing isn't looking good. No matter what they decide to do, it's abruptly going to become clear that someone is in more credit trouble.

So far the ECB is refusing to take any losses on the Greek bonds, but that would deliver a massive loss to the banks because the ECB now has a big chunk of them. Even another 300 billion in the rescue fund is going to put France underwater after it funds its banks. It's not pretty.

Europe is divided on whether to print and how those proceeds are to be divided. The US has no qualms about
printing. Deflation at first for Europe, inflation for those who
control their printing presses. Savers lose again. Stagflation at best.
Yeah, it almost always works out well for the Ruling Elites; the "little people" are the ones who suffer and ultimately wind up paying for the mistakes of their "betters".

Occasionally, however, the hoi polloi decide they've had enough. The uprisings usually don't work out all that well for the little people either, but (at least temporarily) it tends to be VERY, VERY UNPLEASANT for the Elites. One would think they'd start to notice that we-who-pay are getting cranky...

wv= swaill
Is that "swell" in a long drawn-out Southern twang? Or perhaps it's "swill", the leftovers only hogs will eat???
A_Nonny & Spork - if the US follows a course that ultimately destroys the bulk of holdings in private pension funds, I think you will see at least a massive political change.

The US faces a major economic restructuring. It will be painful, but we're already well on our way. However, aside from supporting the true economic casualties, I worry that the elites do not realize how close they are to decapitalizing the middle class. This would be insanely destructive.
Spork - it looks like inflation and recession for Europe, and inflation and recession (milder) for the US.

I worry that in trying to avoid the unavoidable the policy makers will create an Argentine-type scenario.
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