The FOMC's stated policy of creating sufficient inflation has been effective: up 36% from January 2000.  But there are victims: the middle class and ultimately the economy.

The easy way out of turning to bigger, more solvent governments for bailouts has run its course. The chamber is empty.

A mere two weeks ago FIVE central banks intervened to help the European banking system. The benefits of that intervention last one week. Things are now so bad in Europe that corporations are now pulling their money from private banks and depositing directly with the ECB:

This pace of Corporate Profit expansion has now kept up for 10 straight quarters as Government Bail-Outs go straight into the vaults, completely bypassing any possible benefit to US workers.

The reality is that Europe in its current form is over. No German backstop means no success for the EFSF no matter who big it becomes. Germany IS the backstop for the EU. Take it out of the equation and the EU in its current form is finished.

The following is an excerpt from the contribution from BoomBustBlog resident trader Eurocalypse

Squueze we said squeeze it was, now what?

All you need to read.

Just who is watching who? We're watching them is the answer