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|User Info||As Europe Teeters This Weekend...; entered at 2012-06-24 13:58:13|
Registered: 2009-02-28 DFW, Tx
Karl, you might find this article on Mises.org interesting from an angle other than what we hear. It is really kind of anti Nigel Farage in regard to the Euro, in that it is about the Euro forcing the big governments in Europe to reform and shrink. Germany adopted reforms over the last decade to conform to the rules of the Eurozone while the rest of Europe took the stability of the currency as a permit to squander their resources and credit. Others, not including most of the other northern states. The current cries are more about the political classes and bankers needing adjustments to continue their own games, which are exponential expansion of credit for the purpose of more profits and more goodies for their political beneficiaries. The reason the Euro doesn't fit is because the bankers and politicians like to violate the rules and screw the rest of society out of what they produce, for example, the Krugman, Bernanke, Obama line of thinking. Most of the Obama stimulus went to keep paying over priced state union labor, rather than real investment. Shovel ready projects were generally union coffers, where the unions shoveled in the money. The reason why the Euro doesn't work is the same reason the gold standard didn't work, in that the excessive credit creation of banks and governments exceeded the capacity of the monetary base to sustain the exponential increase of debt. This goes a long way toward your dollar capital for dollar risk, low growth government and stable or even declining prices.|