Macro Perspective, Eurozone style

Global Financial System Explained

But fear not because China has the fire power (not) to save failed European sovereigns via easy access to dumb money that will then grow their way out of their debt with their uncompetitive labour markets, massive austerity measures, and inability to devalue to boost exports all while competing on a par currency basis with Germany. You can see that the leading financial minds have already come to the forgone conclusion, that everything is fine, as they are so willing to lend money to each other. Meanwhile the good times continue to roll for Italian banks as they have found another way to extend and pretend, which as everyone knows is an obvious solution.

As we can see, the giant circle jerk continues unabated, and leading financial experts at Baron’s have made it clear that a bailout is the only option because god forbid anyone who made a retarded decision actually incur a loss. It is common knowledge that the solution to a decade long asset bubble, low interest rates and loose monetary policy is looser monetary policy, because clearly the Portuguese austerity measures are working wonders for the economy. They will be able to grow their way out of that debt in no time.  So as soon as Germany’s government figures out how to overcome the constitution, the high court and the very real risk of being skinned alive by the electorate they can begin printing in a way that would put the great bearded one to shame. All this, naturally, shall not cause further inflation as everyone knows it is “transitory.” Quite simply put, re-inflating a massively inflated asset bubble, be it in retarded internet companies, housing, or sovereign debt just doesn’t count.

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