Generational Dynamics Forum - New Site

[quote="John"]The ECB has poured an eye-watering €1.1 trillion of "printed" money into the European banking system, so that European banks could loan the money to businesses, and could drive down Spain's and Italy's bond yields (interest rates) by becoming a major purchaser of those bonds. But, as has happened every single time with one of these "nuclear options," the plan works for a while and the fails. [/quote]

In the short term, printing money and buying bonds can drive up the value of bonds and lower interest rates. But in the longer term, printing money reduces the value of money and so reduces the value of bonds and raises interest rates. So the short term effect is fighting the long term effect. As they keep upping the amounts they print it is like they are fighting harder against the long term effect. It is sort of pushing harder and harder against a spring to hold it down. When things snap they can get really ugly.

http://pair.offshore.ai/38yearcycle/#hyperinflation

Whatever collapses the European economy, I believe that it'll be triggered either by Spain or Italy. Smaller countries like Greece can be contained, provided you pour hundreds of billions of dollars into it, and we've decided to do just that. Spain's unemployment is where ours was in 1933, so they may as well have already collapsed.

5-Apr-12 World View -- Female suicide bomber attacks Somalia's National Theatre


Spain is in 'extreme difficulty' and threatens renewed euro crisis

[i][url=http://www.generationaldynamics.com/cgi-bin/D.PL?xct=gd.e120405#e120405]** 5-Apr-12 World View -- Female suicide bomber attacks Somalia's National Theatre[/url]
** [url]http://www.generationaldynamics.com/cgi-bin/D.PL?xct=gd.e120405#e120405[/url][/i]



Contents:
Female suicide bomber attacks Somalia's National Theatre
Spain is in 'extreme difficulty' and threatens renewed euro crisis
Financial pundits worry about end of quantitative easing
Greece may have to cancel Olympics participation


Keys:
Generational Dynamics, Somalia, National Theatre,
Abdiweli Mohamed Ali, al-Shebaab, al-Qaeda, Sufi,
Greece, Spain, Mariano Rajoy, ECB, Law of Mean Reversion,
Olympics, Greek Athletics Federation