The EU is Out of Money. End of Story. And Neither The Fed Nor The ECB Can “Print” To Save The Day!

- You cannot solve a solvency (bankruptcy) with massive injections of liquidity. Will any bank lend to me when I am bankrupt and there is no possibility of paying back the capital owed? Obviously not! But these Illuminist banksters want us to believe that more bailouts (ie. more debts, new debts) will solve a debt problem.
– - If creating money out of thin air is the solution to the problem, then why not go the whole hog? Print/create US$1 million for every man, woman, child and their pet dog. Abolish all taxes! You need money just create it out of thin air. If this fraudulent counterfeiting of money is the answer, the economy would not be in the state it is in after QE1, QE2, LTRO, Operation Twist … These are all economic BS. Central banks are not the drivers of the economy. The world has existed without a central banking cartel for 5000+ years. It is only within the past 200-300 years that this Illuminist cartel was created to financially enslave the sheeple with odious debts.
–
The EU is Out of Money. End of Story. And Neither the Fed Nor the ECB Can “Print” To Save the Day!
by Graham Summers, Phoenix Capital Research , via www.zerohedge.com
While various media outlets and “analysts” try to claim that the EU summit was somehow a success and that Europe’s issues are solved, the fact remains that Europe is out of money. And I mean TOTALLY out of money.
–
I realize this flies in the face of what 99% of analysts are claiming. But this is a proven fact. Of the various entities that could hold the EU together (the ECB, the IMF, Germany, and the two bailout funds: the EFSF and the ESM) none and I mean NONE of them actually have the capital to do it. I am continually bombarded with emails from people saying, “well, if things get bad the Fed or ECB will just print and everything is solved.”
–
This is beyond wrong. It is just groupthink based on the idea that the Fed has intervened ever since the Great Crisis began in 2008 (ZeroHedge recently ran an article showing that the Fed has intervened in over two thirds of the months since the Crisis began.
–
However, even Fed intervention has a limit. To whit, the Fed has now pulled back from any aggressive monetary policy for over a year. There has been no money printing. Instead, the Fed has re-arranged its portfolio to attempt to flatten the yield curve.
–
Why is the Fed doing this instead of simply engaging in more QE? The answer is because QE removes Treasuries from the banking system. We are facing a solvency Crisis and Treasuries are the senior most asset on US bank balance sheets.
–
read more!
end