In her case this translates into a politically hot €4,870 for each German. France is expected to present its rescue package in sync with Germany and other Eurozone members will probably follow.
Trainwreck In Disguise of an Ambulance
If it will take €400 billion only to rescue the German banking sector, the tab for this Eurozone crisis will soon need a TRILLION-digit. Frances "package" won't come much dearer and now we have only talked about two of the comparatively better economies on the old continent.
It can be safely said that all other Euro members face problems of the same dimension that may be too big to write them off without a systemic disruption.
And the bill has been growing exponentially. 14 months earlier the European Central Bank (ECB) had pumped €47.5 billion "liquidity" into the system in order to prevent a seize up. By now it takes more than five times of that in refinancing to keep the banking machine stuttering along, creating more inflation on the way.
A temporary abatement of lower inflation figures in line with the retracement of crude prices will soon be hailed as proof that the ECB's toxic medicine works.
It won't matter for Eurozone citizens in the end. Fiscal irresponsibility as demonstrated by governments willing to follow advice that will ultimately lead to more inflation in the long run.
Europeans still seem to buy the "guarantees" on savings by their governments, obviously not realizing that it is themselves who will stand up for these guarantees with their future tax services. This is not a rescue, this is a trainwreck in the disguise of an ambulance.
If it will take €400 billion only to rescue the German banking sector, the tab for this Eurozone crisis will soon need a TRILLION-digit. Frances "package" won't come much dearer and now we have only talked about two of the comparatively better economies on the old continent.
It can be safely said that all other Euro members face problems of the same dimension that may be too big to write them off without a systemic disruption.
And the bill has been growing exponentially. 14 months earlier the European Central Bank (ECB) had pumped €47.5 billion "liquidity" into the system in order to prevent a seize up. By now it takes more than five times of that in refinancing to keep the banking machine stuttering along, creating more inflation on the way.
A temporary abatement of lower inflation figures in line with the retracement of crude prices will soon be hailed as proof that the ECB's toxic medicine works.
It won't matter for Eurozone citizens in the end. Fiscal irresponsibility as demonstrated by governments willing to follow advice that will ultimately lead to more inflation in the long run.
Europeans still seem to buy the "guarantees" on savings by their governments, obviously not realizing that it is themselves who will stand up for these guarantees with their future tax services. This is not a rescue, this is a trainwreck in the disguise of an ambulance.
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