A rush from sugar or a rush to gold ?

“We think we have an agreement, but we are not sure what it is.”

 

-       Negotiator at the Euro zone “crisis summit” last week, as reported in The Economist.

 

“You don’t have to be paranoid to be terrified.”

 

-       Ditto.

 

If a ballistics expert were so poor at his job that his artillery routinely fired missiles into the sea or, worse still, at his own men, he would soon be removed from office. He might perhaps be purged more dramatically, pour encourager les autres. No such logic would seem to apply, however, in either politics or economics in the west, where discredited practitioners of failed theories are allowed to pontificate and spend into absurdity. We cannot say with certainty what was spooking European investors prior to last week’s make-or-break summit (the 14^th such “crisis summit” in 21 months), but it seems plausible to argue that they were concerned about an unsustainable build-up of credit, credit risk and leverage. Happily, those concerns have now been put to rest, because the euro zone’s leaders have pledged more credit, more credit risk, and more leverage. To put it another way, Messrs Sarkozy and Merkel have bought more time, albeit time paid for with yet more borrowed money. A three ring circus of blind, incontinent clowns would have more class.

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Comments

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Just two years after ‘The China Syndrome’ lifted the lid on Spanish practices in the US

[Dennis The Menance]

Their was a time when you could take your dollars to a federal reserve bank and get paid in gold for your dollars. Today are dollar has no real value only the value that the federal reserve chooses it to be. By printing massive amounts of money the result will be decreasing purchasing power of money over time and more and more concentration of wealth. The gap between the super rich and everybody else will widden enormously.