And it is a further distraction from seeing that the rate of oil production is insufficient to support economic growth and that there is to much carbon dioxide in the air. All the while we attempt to reform the banking system we slide closer to the cliff-edge.
FINLAND would consider leaving the eurozone rather than paying the debts of other countries in the currency bloc, Finnish Finance Minister Jutta Urpilainen has said.
In a newspaper interview today she said she'd consider crashing her AAA-rated country out of the eurozone.
“Finland is committed to being a member of the eurozone, and we think that the euro is useful for Finland. Finland will not hang itself to the euro at any cost and we are prepared for all scenarios.
“Collective responsibility for other countries' debt, economics and risks; this is not what we should be prepared for. We are constructive and want to solve the crisis, but not on any terms,” she said.
This kills off any hope of rescuing the project to build a single European state. This is the first example of a country threatening to leave the eurozone, and its one of the three eurozone countries that isn't already in trouble. Given that the German constitutional court is also still claiming there is a clash with the German constitution, this is now heading towards Germany, Finland and Denmark either leaving the eurozone and going back to their old currencies, or creating a new "inner eurozone" without France and the periphery. There would then be an organised devaluation of the "outer euro."
"We fail to mandate economic sanity because our brains are addled by....compassion." (Garrett Hardin)
German two-year note yields fell the most this year, pushing the rate below zero
People are paying for the privilege of lending money to the Germans??
It's like when something has gone horribly wrong with a computer program, and negative numbers are appearing where only positive numbers ever made sense.
And Spain's borrowing costs are back up to where they were before the last "big agreement":
Mervyn seems to have adopted the language of PowerSwitch:
n an interview with the BBC, Mervyn King again criticized the approach of euro-zone policy makers, whom he said had postponed efforts to tackle the currency area's fundamental economic problems in a strategy he described as "kicking the can down the road."
"The scale of debts that will ultimately have to be resolved one way or another is growing," Mr. King said.
A article on the UK banks to make your blood boil.
I don't know, some of it is quite positive in a desperate kind of way.
The mainstream press as illustrated by the BBC has been busy lately reporting that over half a million people have also concluded that the time has come to abandon Britains biggest banks by drawing their funds out and depositing with more ethical, mutual's or local banks such as the Co-op and the Nationwide.
If you have not already done so then you need to both protect your savings from crooked big banks before it gets permanently frozen RBS style or worse, and do your part in decreasing the size of these so called too big to fail banks by re-allocating your savings elsewhere. It won't be long before the mainstream press will start reporting on customer black listing of big UK banks due to the stomach churning feeling they get each time they step across the thresholds at the likes of RBS and Barclays, as existing customers wait in the queue to be called to fraudster number 3, I mean cashier number 3 as one wonders what will be the next big bankster fiddle perpetuated on customers to be revealed, following the likes of PPI mis-selling, or even more recent news of worthless interest rate hedges that crippled and bankrupted many small businesses.
This, however, is not so positive! There is a certain worrying logic to this explanation.
The reason why we have not had even higher inflation or even hyperinflation despite 3 years of money printing is because the QE to date has been targeted at preventing the banks from going bankrupt rather than to boost the economy, because they cannot do both, if they did you would get very high inflation. The Bank of England DOES NOT WANT THE BANKS TO LEND MORE MONEY ! Which is why they are NOT lending but holding onto the money. Because if they did start lending inflation would soar, after all it is already at 3% whilst the UK ins in a recession, at a time when the banks are NOT lending. Instead the Bank of England / Government wants the bankrupt banks to generate tax payer funded profits so that they can write down there debts.
This means that virtually EVERYTHING you hear in the mainstream press about the Politicians and the Bank of England's trying and failing to get the banks to lend more is basically a lie. They want the banks to use the QE money to make profits to write down debts and NOT to lend it out in the general economy because of the fear of Inflation, this is illustrated by the fact that as soon as Inflation recently dipped back below 3% the Bank of England announced that it would pump another £50 billion into the banks, which is on top of the £140 billion non QE programme announced in mid June.
Kunstler wrote:
For months now it has been down to whether Germany intends to keep supporting Spain, Italy, Greece, Portugal, Ireland, the French banks (and a few stray forgotten places between the backwaters of the Danube and the Gulf of Finland) without any say in how they manage their allowance. Much as Germany enjoyed the Ponzi heyday of the Euro zone, a big "tilt" sign now flashes ominously over the continent, signaling game over. All fall down.
Everybody gets real poor real fast. M. Hollandaise over in Paris has already sealed his fate with his stupid plan to return to "go" on the Ponzi game-board. Merkel's tattered scarecrow of a coalition will blow away in the next national election. The Club Med countries will soon boil up in street-fighting, Holland and Finland will drink themselves to death, and across the channel outsider Britain will fizzle away to a burnt bowl of mulligatawny. That's what the end of the summer looks like to me.
Over here, in this sorry-ass edition of America, the election will look more and more like a World Wrestling Federation staged dumb-show between two catamite hostages of a foul corporate oligarchy. Imagine that horse's ass Mitt Romney spending the next four months denouncing Obama-care, modeled on his own health care reform in Massachusetts, while Obama pretends he has a grip on an economy where the rule of law is absent due to Obama's own omissions and negligence.
And if you can't stand that spectacle, just look around at America itself: a wasteland of futile motoring and discount shopping populated by depressed, overfed clowns bedizened with sinister tattoos, pretending to be Star Warriors. No nation ever seen in human history ever laid such a disappointing egg. Only to have it fry on the sidewalk._____
