by OLD1953 » Thu Oct 20, 2011 12:11 am
Of course there is a solution, many have proposed it. Set up a means by which Greece, Italy and Portugal can exit the EURO and return to a local currency. Then they can default, inflate, devalue or whatever they need to do, and this will not destroy European unity.
The bankers and investors, of course, resist this. They priced bonds on the assumption that Germany and France were backing ALL EURO issued bonds, no matter the country of issue.
More and more, this becomes a fight between the desires of the banks and the needs of the people and the countries as a whole. The economic systems need a reset, and any form of reset means the banks lose huge amounts of capital - mostly imaginary capital they created from nothing, but they still want to keep this on their books. A question never asked is "how many institutions are carrying Greek bonds issued in the last two years on their books at full value?". Far more than anyone wants to admit or examine, would be the most nearly correct answer, or so I believe. And the crash will prove it.
That angry Greek could just as easily have been screaming "rip off the bandaids!".
It seems odd to me that Iraqi officials do not want to make an agreement with the US to continue to provide border security, while such invasions make it obvious that they cannot secure their borders at all. The reasoning of politicians is very like to the peace of God. (Phl 4:7 )
Of course there is a solution, many have proposed it. Set up a means by which Greece, Italy and Portugal can exit the EURO and return to a local currency. Then they can default, inflate, devalue or whatever they need to do, and this will not destroy European unity.
The bankers and investors, of course, resist this. They priced bonds on the assumption that Germany and France were backing ALL EURO issued bonds, no matter the country of issue.
More and more, this becomes a fight between the desires of the banks and the needs of the people and the countries as a whole. The economic systems need a reset, and any form of reset means the banks lose huge amounts of capital - mostly imaginary capital they created from nothing, but they still want to keep this on their books. A question never asked is "how many institutions are carrying Greek bonds issued in the last two years on their books at full value?". Far more than anyone wants to admit or examine, would be the most nearly correct answer, or so I believe. And the crash will prove it.
That angry Greek could just as easily have been screaming "rip off the bandaids!".
It seems odd to me that Iraqi officials do not want to make an agreement with the US to continue to provide border security, while such invasions make it obvious that they cannot secure their borders at all. The reasoning of politicians is very like to the peace of God. (Phl 4:7 )