You’re probably sitting there, scratching your head, wondering… what does Europe have to do with economics and monetary policy in the United States?
In sports, football in particular, if the opposition is stomping your ass on the field, then it’s clear that momentum is against you.
What do you do?
You call a “time-out.” (Or the quarterback does…)
This little ploy, that was written into the rules long before I became a fan, helps to break the “rhythm” of the opposing team and give your team a moment to catch their breath (and their wits), re-evaluate the situation and re-group.
In the case of the European euro, EU officials called a time-out back in February hoping to stem the heavy wave of selling against the euro and the speculative pressures on sovereign debt risk.
When they managed to re-group, they only managed to stave off the “end game” confusion.
Let me explain:
They announced support for Greece; but they didn’t provide any details. (Sounds like they had Pelosi working on their press release: “just pass it, and we’ll figure it out later.)
Why did they announce “support” for Greece? Well, first and foremost, solely to “muddy up” the waters. They were just trying to stave off the sell off of the Euro.
What does that have to do with you and me here in the States?
Stick with me…
Rumors of a financial aid package were intentionally leaked to the world-wide press — sort of like the Global Mainstream Media (MSM), they did an “end run” and denied any notion of transferring taxpayer money from a fiscally responsible country to a fiscally irresponsible country.
I have yet to figure out which country in the EU is fiscally responsible, but there is no doubt who they are referring to when they call Greece fiscally irresponsible. They have a history of almost a hundred years of the worst economic management in the world, and who in their right mind would want to lend them money?
But, I do digress.
There was talk about creating a European Monetary Fund (EMF) — not anything akin to Electro-Magnetic Fluctuation — but could, possibly, be analogous to currency fluctuations.
Anyway, their “supposed” fiduciary support for ailing countries in the EU was only a ruse to stop the bleeding in their currency (and markets).
Nevertheless, it was only putting a small bandage on a shotgun wound.
The financial “wizards” turned around and denied any such idea of monetary support for Greece, and blamed it on “lack of viability.” It was merely the discussion of a delusional — and bad — idea. (Is this starting to sound like they have a bunch of our morons working for them? Maybe they even have the Hildebeast “advising” them… who knows.)
Dissemintating enough “leakage” to the press was successful in that they gave enough “cross signals” to confuse market speculators and break their rhythm (and confidence). As such, the euro stabilized, and all bets for financial assistance to Greece was off.
(Well, actually the euro didn’t stabilize, but that’s the “appearance” they wanted to give the EU market speculators. I’m wondering if the U.S. market speculators drank that batch of kool-aid? Hmmm…)
The only thing the Euro-zone leaders did was to create enough confusion to buy some time for their common currency, the euro.
Because the euro is based on a lot of structural flaws to begin with, it comes as no surprise that the monetary union will eventually collapse on its ass. And, the likelihood of ANY actual intervention in Greece — or other weak spots in Europe — is somewhere between nil and nada, niente, nunca, zip, zilch, and whatever else you want to describe as histoire.
So, it’s now apparent that the EU has exhausted its allotted “time-outs,” and we have some semblance of order.
Or, so you would think…
Their quasi–resolution on the “they will or they won’t bail-out” Greece has only served the purpose of stopping the bleeding… for now.
Now, they want to delude themselves to think that they can create a joint venture with the IMF and the EMF as some sort of a lender of last resort to Greece.
AIN’T GONNA HAPPEN!
Why? Who do you think the biggest contributor is to the IMF?
You got it, pardner! The Good Ol’ U.S. of A!
And, with a multi-trillion dollar deficit being fueled by socialist “health care reform” making it worse, let’s go ahead and let the cat out of this bag right now and say this: THERE WILL BE NO MONEY IN THE IMF FOR A JOINT VENTURE TO BAIL OUT A BUNCH OF EUROPEAN FINANCIAL NIT-WITS, NINCUMPOOPS, AND MORONS!
If you can’t get your financial house in order, don’t come to a bankrupt Community Organizer for a bail out! We’ve got enough ninnies running around with their hands out looking for a nanny!
Although it appears that the EU professes support for this debacle, it’s actually just a ruse. Their previous comments are to the contrary.
Here’s what the three “big hitters” in the EU have to say about this agreement:
French President Nicolas Sarkozy has said an IMF option would make the E.U. look incapable of resolving its own crises. To put it bluntly, the EU is economically flacid and an injection of monetary viagra would “get it up” if it had to…
In short, it’s got a snow-ball’s chance in hell.
European Central Bank President Jean-Claude Trichet previously said IMF involvement would “not be appropriate.”
Not “appropriate?” How’s about im-FRICKIN-possible, dude!!!???
Angela Merkel (German Chancellor) said, “We want to solve our problems ourselves.”
So, let me see: Germany holds the purse strings to the monetary strength (and solvency) of the EU, and Germany wants to solve their own problems?
When have they EVER solved their financial problems?
I can’t, for the life of me, ever remember over the last 400-500 years of European history that they’ve EVER been solvent!
But, I digress again…
So now it’s up to the markets to determine whether or not the IMF/EU safety net works.
Is it enough to reduce the risk premium associated with investing in Greek debt?
Apparently not. Investing in a free market economy makes much better business sense, and what is this nonsense about “investing” in debt?
Is that a f***ing oxymoron, or what???!!!
The dam has broken, and other weak countries will be lining up for a similar backstop. How can they be denied?
It’s human nature!
I mean, come on! Just take a look at what happened here in the U.S. when everybody started screaming “the sky is falling!”
First you had Fannie Mae, then Freddie Mac, then the banks, then the car companies (minus Ford on the second go around — do you think they saw this coming?).
Now, you’ve got every other suck-tit wanting to get on the government teats and drain the productive class into oblivion.
Where can we go?
Move to another country?
Or, can we just let the “market” shake out the losers and let them start over.
Maybe it would cause some of these losers to re-think and re-invent themselves and become self-sufficient?
The possibility of that ever happening is highly unlikely.
It’s engrained into their nature. It’s all part of the “egalitarian” bourgoisie that caused our Founding Fathers to leave that shit-hole (Europe) in the first damned place.
The policy divergence between the U.S. and all three of its leading, developed market competitors (ie. the UK, the euro zone and the Asian Rim) doesn’t bode well for the Greeks (or any of the other EU “losers”).
With interest rate prospects growing in favor of the U.S., and the continued decline of the euro, don’t look to make any money in the euro currency.
Take a lesson from history: was Europe EVER known to be an economic “super-power?”