Wednesday, July 1, 2015

Greek Tragedy

As the Grecian Urn totters, a stunning confession from the global progressive house organ, The New York Times:
"There are some problems that not even $10 trillion can solve."
After some silly talk equating printing money with "growth," the editorial writers stand in slack-jawed puzzlement that, after collectively blowing more than $10 trillion...
"Stifling debt loads, for instance, continue to weigh on governments around the world."

Huh?  Wow!  Imagine that... After spending trillions of dollars, debt loads are now crushing sovereign governments like Greece and Puerto Rico...

Look out!  Here comes another cause-and-effect another stunner:

"Debt in China has soared since the financial crisis of 2008, in part the result of government stimulus efforts." 
Maybe they should call in Paul "Enron Man" Krugman to explain why blowing more money than you have causes debt.  No, wait, he's so smart, he can explain why blowing more money = Growth!  Now, if he just had some real-world examples instead of all those fiscal train wrecks...

Central Banks, at the behest of global financiers and "Politburo" Paul Krugman, rolled the dice and bet $10 trillion on a government-sponsored economic recovery, but shot craps.
"but high borrowing, either by corporations or governments, is also bogging down the globally significant economies of Brazil, Turkey, Italy and China."
So, which is it? Is printing and borrowing fiat currency good, or bad? The writers are confused.

Low interest rates, the Times laments, "can persuade some borrowers to take on more debt," thereby digging themselves in deeper.

So then, we need higher interest rates to discourage borrowing, right?


The NY Times explains that European nations and the central banksters...
" in fear of an increase in interest rates. A further rise in the government bond yields of Spain and Italy could cause a contraction in the fiscal policy of those countries..."
“This ‘involuntary tightening’ is what the E.C.B. does not want,”
So...  governments have created tottering slag heaps of debt trying to stimulate their economies, but it hasn't worked. So interest rates need to stay low so governments like Greece can borrow more, but that's a bad thing, because borrowing creates more debt.

But...  everyone fears rising interest rates will cause borrowing and spending to fall, forcing government into 'austerity' where they borrow and spend less and therefore cannot continue their 'economic stimulus' programs that so far have failed to produce economic growth.
"There is great uncertainty about how the economy works," the BIS says.
Conclusion:  There are two kinds of people reading this. Those who see it, and those who do not. Which are you?

Don't worry, be happy!  Kick back and listen to some Frank Zappa...

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