…the Eurozone dimwits prescribe “more of the same”. From the New York Times:
…As Europe struggles to contain its government debt crisis, the greatest fear is that one of the Continent’s major banks may fail, setting off a financial panic like the one sparked by Lehman’s bankruptcy in September 2008.
European policy makers, determined to avoid such a catastrophe, are prepared to use hundreds of billions of euros of bailout money to prevent any major bank from failing…
It is getting rocky for Europe’s banks, to be sure – it is getting harder and harder to secure those short term loans banks need to keep operating. If any one of the major European banks fails to obtain the necessary operating capital, then that will be the end of the global financial system. Given this, you can understand why the bureaucrats and banksters want to do something…the problem is that they are planning on doing what has already been done, and failed. Most people were suckered by the bailout of the “too big to fail” banks in 2008 and 2009 – we bought the story that if we just did this, all would be made well. Turns out it didn’t work…so now we’re back to square one in 2011 but with much higher debt and greatly devalued currencies. To try it a second time is asinine…but not trying it means default, and that scares the Ruling Class.
And it mostly scares them not because of the loss of wealth (someone who is worth millions or billions and loses 50% of his wealth is still pretty darn rich, after all) but because it could spark political revolutions all across the world…it won’t be a matter of a financial shark like Soros or Buffett taking a hit on the balance sheet, but of the whole political-economic structure being overturned…and thus our financial sharks will lose their power to influence government. That is what scares them – that is what is making them attempt what they know will fail, but which just may keep the global economy out of recession until late 2012 or 2013…by which time they hope that something else will come up to preserve them in power.
Personally, I don’t think they’ll be able to pull it off – a round of printing money (which is the only way they can keep the insolvent banks afloat) would so increase inflation that it would kill off whatever economic activity we currently have. People would be forced to spend an ever increasing part of their income on necessities, thus leaving ever less for the frills…more money on food, less money on electronic gadgets. Gadget makers feel the pinch and start laying people off (mostly because that is the corporate drill..profits down? Lay people off…never even think about using them more efficiently; that would take effort and some basic, human decency). It spirals down from there. Whatever “puff” they can put in to the economy by another round of bail outs will be so damaging that the net result would be worse than if they let things just crash…including “worse” in the Ruling Class sense, as people are on to the scam and another round of it leading to even worse times will just make the revolution burn hotter.
And, “burn, baby, burn”, is all I have to say…I’m heartily sick of things as they are and a little revolution, now and then, is a good thing.