I am not ashamed to confess that I am ignorant of what I do not know.
Marcus Tullius Cicero
Euro crisis unfolding and the latest rescue package is a joke
The first shock and awe failed miserably, victory was initially declared in Iraq, but a few weeks and months later, it looked more like defeat. Ironically the same term has been used to describe the new Euro rescue package. This parcel will only delay the inevitable, short-term relief for even greater longer-term pain.
This package does not address the main problem that many nations that are reeling from this economic slowdown are taking on debt as a means of generating new revenue. Now the leaders at the Eurozone have joined the party, taken on even more debt to address the short-term debt issues, with no plans in place to deal with long-term problems.
The next step would be for these idiots to follow the US and start monetizing their own debt; a silent but nefarious stepping stone to bankruptcy. This is one of the main reasons why Zimbabwe collapsed. No one would buy their paper, so they printed more to buy the crap they had printed before and with each run of the press the value of their currency dropped an ever-increasing pace; now the Zimbabwe dollar is dead, millions are in the doghouse and the unemployment rate is close to 80%.
The only way to fix this problem is to deal with the problem. It will be painful, maybe some nations will have to be thrown and drastic cuts will have to be implemented. Whenever you delay the inevitable the end result is always 10 times more painful.
The Euro is projecting a drop to the 115 ranges, so traders looking to take advantage of a weak euro can purchase shares in EUO.
It is against stupidity in every shape and form that we have to wage our eternal battle. But how can we wonder at the want of sense on the part of those who have had no advantages, when we see such plentiful absence of that commodity on the part of those who have had all the advantages?
William Booth,1829-1912, British Religious Leader, Salvation Army Founder
Other Articles you might find to be of interest:
Large insider transactions; a sign all was not well at Moody’s (May 10)
Roast the PIIGS, and End the Euro Crisis (April 30)