Fun Fact: The debt loads of socialism were the same as capitalism but they were hidden in government finances. Europes banking sector is 4 times the size of the US; $54 trillion versus $11 trillion, and much more filled with crap debt. The US government was lucky as its legal structure required little direct intervention on their part to save their economy when it pretty much died in 2008. The Federal Reserve merely bailed out the banks; and by that, the wealthy and called it a recovery. All it needed was the legal release of government money to fractionally conjure into whatever they needed. The US government gave them $700 billion and they turned it into $29 trillion. The legal restrictions on the central bank of Europe bailing out national finances prohibits them from saving the governments directly, of the most fragile countries in the union; Italy, France, Spain, Greece, and Portugal. England, the Netherlands, Denmark, Switzerland, and Germany are on the hook because their banks invested heavily in the debt of those governments as well as most of Eastern Europe, which is also in dire financial straits. Japan recently agreeing to buy all its own debt was the last kick the can maneuver they had left. No government that does that survives long. So all the major central banks have done what they could. Recently, the same old tremors in the financial system started showing; the long con was starting to fail. The crash in gas prices that many have enjoyed is the first sign of the next phase of the Depression that began in earnest in 2000 and got much worse in 2008. It is causing the currency war to get violent. Nations who export oil for a living are now finding their economies crashing. This is where things get desperate and the central banks have already gone all in. Get your popcorn ready; the shows about to begin... ;)
Posted on: Sun, 14 Dec 2014 01:26:36 +0000
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