European Crisis: What's Really Going On Right Now
What's really going on with the European debt crisis right now? Here's a sampling from a summary report I read every week.As you read through these, see if any of it makes any sense to you.
“European policy makers are fighting a ‘complete lack of confidence’ in their ability to resolve the crisis after failing to persuade investors they’re united in their choice of tools to handle the turmoil, Fitch Ratings President Paul Taylor said. ‘The key issue in European markets is very much about confidence,’ Taylor said…"
“Spain’s banks need urgent aid plugged directly into their balance sheets and Europe can no longer allow itself to deploy half measures, according to the leaders of some of the world’s biggest banking and finance groups. ‘It must be done with full magnitude,’ Christian Clausen, the president of the European Banking Federation and chief executive officer of Nordea Bank AB, said… Recapitalizing Spain’s banks has become the key hurdle that European policy makers need to overcome, and fixing the turmoil in the nation’s financial system would calm markets, he said."
“Europe is battling to agree on plans to combat the region's debt crisis as differences emerged Monday between France and Germany on propping up Spain's ailing banking system."
“The European Central Bank may be running out of options it can stomach. With the euro area assailed by spreading recession, financial-market instability and political impasse over the direction the single currency should take, ECB President Mario Draghi yesterday stressed the limitations of his current policy tools, from standard interest-rate cuts to bond-buying and liquidity injections."
“As Spain edges closer to a full sovereign rescue, economists have begun to doubt whether the EU bail-out machinery can raise such large sums funds at viable cost on global capital markets."
“As European leaders grapple with how to preserve their monetary union, Greece is rapidly running out of money. Government coffers could be empty as soon as July, shortly after this month’s pivotal elections."
If you're not careful, you'll get sucked into the vortex of all the "solutions" being proposed. They all have to do with "fixes." But what are they fixing?
They're fixing a system that, at best, will only be patched together to live another day and generate another crisis, when the real problem, the real issue is being totally ignored. And it's staring us all right in the face.
The real issue is the entire system of socialism that began many, many years ago in Europe. That system has failed. It cannot be fixed. It can be patched, but it cannot be fixed.
The politicians who are in charge of it - all of them - have so far not been called on the carpet to account for the system they have led all these years. At best, one politician gets the boot - as happened recently in Greece, before that in Italy, before that in Spain, before that in Ireland...etc. A new politician takes over and the system remains intact.
Sure, one politician is labeled "liberal" or "left-wing" and the one who takes over is labeled "conservative" or "right wing" - or vice-versa. But whoever gets into power keeps the system running somehow, some way.
And it's the system of socialism that will keep Europe in crisis until someone has the courage to face up to the fact that the system must change, or Europe will simply continue to slide into the increasingly unjust, system run by a group of "elites" - whether they're called oligarchs, plutocrats, bureaucrats...take your pick.
Will "the people" wake up and realize that socialism - the system that has had Europe in its grip for decades, no centuries - is at the root of their troubles? Will they turn on their leaders and demand a just economic and legal system that values the individual as a unique creature of God, or will they keep voting in leaders who value the state over the individual as they have since the French Revolution.
I hate to get all historical on you like this, but it's a subject we'll have to talk more about. The problem isn't being solved because it isn't even being addressed. That's why I just told you what the real problem is.
Read the quotes above and tell me if any of them remotely recognized the utter bankruptcy and - I would claim - injustice, even depravity of the socialist system that every European government is based on - a system that glorifies the State and ultimately doesn't give a hoot about people.
“European policy makers are fighting a ‘complete lack of confidence’ in their ability to resolve the crisis after failing to persuade investors they’re united in their choice of tools to handle the turmoil, Fitch Ratings President Paul Taylor said. ‘The key issue in European markets is very much about confidence,’ Taylor said…"
“Spain’s banks need urgent aid plugged directly into their balance sheets and Europe can no longer allow itself to deploy half measures, according to the leaders of some of the world’s biggest banking and finance groups. ‘It must be done with full magnitude,’ Christian Clausen, the president of the European Banking Federation and chief executive officer of Nordea Bank AB, said… Recapitalizing Spain’s banks has become the key hurdle that European policy makers need to overcome, and fixing the turmoil in the nation’s financial system would calm markets, he said."
“Europe is battling to agree on plans to combat the region's debt crisis as differences emerged Monday between France and Germany on propping up Spain's ailing banking system."
“The European Central Bank may be running out of options it can stomach. With the euro area assailed by spreading recession, financial-market instability and political impasse over the direction the single currency should take, ECB President Mario Draghi yesterday stressed the limitations of his current policy tools, from standard interest-rate cuts to bond-buying and liquidity injections."
“As Spain edges closer to a full sovereign rescue, economists have begun to doubt whether the EU bail-out machinery can raise such large sums funds at viable cost on global capital markets."
“As European leaders grapple with how to preserve their monetary union, Greece is rapidly running out of money. Government coffers could be empty as soon as July, shortly after this month’s pivotal elections."
If you're not careful, you'll get sucked into the vortex of all the "solutions" being proposed. They all have to do with "fixes." But what are they fixing?
They're fixing a system that, at best, will only be patched together to live another day and generate another crisis, when the real problem, the real issue is being totally ignored. And it's staring us all right in the face.
The real issue is the entire system of socialism that began many, many years ago in Europe. That system has failed. It cannot be fixed. It can be patched, but it cannot be fixed.
The politicians who are in charge of it - all of them - have so far not been called on the carpet to account for the system they have led all these years. At best, one politician gets the boot - as happened recently in Greece, before that in Italy, before that in Spain, before that in Ireland...etc. A new politician takes over and the system remains intact.
Sure, one politician is labeled "liberal" or "left-wing" and the one who takes over is labeled "conservative" or "right wing" - or vice-versa. But whoever gets into power keeps the system running somehow, some way.
And it's the system of socialism that will keep Europe in crisis until someone has the courage to face up to the fact that the system must change, or Europe will simply continue to slide into the increasingly unjust, system run by a group of "elites" - whether they're called oligarchs, plutocrats, bureaucrats...take your pick.
Will "the people" wake up and realize that socialism - the system that has had Europe in its grip for decades, no centuries - is at the root of their troubles? Will they turn on their leaders and demand a just economic and legal system that values the individual as a unique creature of God, or will they keep voting in leaders who value the state over the individual as they have since the French Revolution.
I hate to get all historical on you like this, but it's a subject we'll have to talk more about. The problem isn't being solved because it isn't even being addressed. That's why I just told you what the real problem is.
Read the quotes above and tell me if any of them remotely recognized the utter bankruptcy and - I would claim - injustice, even depravity of the socialist system that every European government is based on - a system that glorifies the State and ultimately doesn't give a hoot about people.
Comments
So now they're looking at each other trying to figure out who's going to be eaten next. Everyone is claiming that they're not hungry, in an effort to try to hold off the inevitable. Greece was picked. Ireland, Spain, Italy, and Portugal are all being eyed. The USA and Germany are determined to be the last ones to go.
Meanwhile, everyone in the boat is enviously looking over at Brazil, Russia, India, China, and South Africa, who made their own boat, have their backs together, and are fishing.
And now you understand the current state of affairs in international finance.