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Washington Post: Europe Is Stuck In a “Greater Depression”

George Washington's picture




 

The Washington Post’s Wonkblog reports:

Europe hasn’t recovered, because it hasn’t let itself. Too much fiscal austerity and too little monetary stimulus have, instead, put it more than halfway to a lost decade that’s already worse than the 1930s.

 

It’s a greater depression.

 

And as the latest GDP numbers show, it’s not getting any less so. Indeed, the eurozone as a whole didn’t grow at all in the second quarter. Neither did France, whose economy has actually been flat for a year now. Germany’s economy fell 0.2 percent from the previous quarter—and that after revisions revealed it had quietly gone through a double-dip recession in early 2013. Though that’s still much better than Italy: Its GDP also fell 0.2 percent, but its triple-dip recession has now wiped out all growth since 2000. The closest thing approximating good news was that Spain’s dead-cat bounce recovery continued with 0.6 percent growth. But it still has 24.5 percent unemployment.

 

***

 

But it’s a little misleading to just call this a depression. It’s worse than that. Europe is turning Japanese. The combination of zombie banks, a rapidly aging population and, most importantly, too-tight money have pushed it into a “lowflationary” trap that makes it hard to grow, and is even harder to escape from.

We agree with the diagnosis, but not the cure …

Diagnosis-wise, we noted last year that the British economy is worse than during the Great Depression.

But the “austerity” versus “stimulus” debate is a false dichotomy.    If a patient is bleeding out, doctors have to suture the wounds before they decide whether to give more blood or to taper off the amount of transfusions.

But Europe has never treated the wounds …  As we noted in 2011, failing to prosecute financial fraud – on either side of the Atlantic – is extending the economic crisis.

In 2012, we pointed out that European (and American) governments were encouraging bank manipulation and fraud to cover up insolvency … trying to put lipstick on a pig.

Indeed:

  • Quantitative easing hurts the economy. Even the Bank of England and the creators of QE admit that it is "pushing on a string".  But the UK did tons of QE instead of actually fixing the economy

Heck of a job, guys ...

 

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Sun, 08/17/2014 - 11:45 | 5104998 falga
falga's picture

Problem of Europe is that they can still export Christine Lagarde who claims to be a free market promoter when in fact she is directly responsible for choking the French economy with unsustainable taxation! The average citizen is bombarded by information on what the government is doing or going to do for them while at the same time strangling him into unconsciousness. This cannot end well.

Sun, 08/17/2014 - 10:37 | 5104827 Fix It Again Timmy
Fix It Again Timmy's picture

"He who does not punish evil commands it to be done."  Leonardo da Vinci ---- Nothing, and I mean NOTHING, is being punished...

Sun, 08/17/2014 - 10:37 | 5104826 smacker
smacker's picture

"As we noted in 2011, failing to prosecute financial fraud – on either side of the Atlantic – is extending the economic crisis."

I never saw this comment back in 2011 but I totally agee with it. How can people trust the banks & government and feel confident to invest and spend when they're both being run by fraudsters, liars and assorted criminals? Doesn't make sense.

I agee with most of the other comments too, some good home truths there. Virtually every monetary/fiscal policy response to the 2007-8 crash has been wong and only intended to support and line the pockets of the 0.01%. Not exactly good to generate broad confidence.

Sun, 08/17/2014 - 06:05 | 5104460 heavy.metal
heavy.metal's picture

Worry not, free market will fix this mess as soon as the paper pushers run out of gold. It's just a matter of time.

Keep stacking!! Make the beast bleed.

 

Sat, 08/16/2014 - 21:50 | 5103617 Peter Pan
Peter Pan's picture

There are too many politicians and not enough patriots.

To make matters worse one cannot express an opinion without being tarred as being a terrorist, anti-semitic or a conspiracy theorist.

Europe continues to be a failed experiment because more problems are created than solved and to make matters worse it is still being wagged like a dog's tail by the USA.

This planet will drown in its own business, governmental and personal waste.

Sun, 08/17/2014 - 05:45 | 5104445 Monty Burns
Monty Burns's picture

What does a drop in growth, or even negative growth mean?  For example if you read tne foreign media you'd think Ireland had people starving in the streets since the banking collapse  - and the ECB landing the bill on the Irish taxpayer.

In actual fact things go on pretty much as they did before. Hostelries busy, new cars on the road in numbers similar to previous years, people going abroad for vacations the same way..   I'm sure there has been some reduction in spending but the point is that life goes on pretty much as it has done in recent decades. 

My own belief is that the central banking agenda has conditioned us to think that growth and inflation are prerequisites for a healthy economy and even societies.  I suggest that once a country reaches a level of economic development like that in most of Europe the pusuit of further growth is not necessary.

Sat, 08/16/2014 - 20:20 | 5103432 TeethVillage88s
TeethVillage88s's picture

Right this is Racketeering, punishable under Title 18 of US Code. Mafia Tricks and Conspiracy and Collusion and Cover-ups and manipulating the press with reduced freedom of Speech.

----

"Diagnosis-wise, we noted last year that the British economy is worse than during the Great Depression."

"But the “austerity” versus “stimulus” debate is a false dichotomy. If a patient is bleeding out, doctors have to suture the wounds before they decide whether to give more blood or to taper off the amount of transfusions."

"But Europe has never treated the wounds … As we noted in 2011, failing to prosecute financial fraud – on either side of the Atlantic – is extending the economic crisis."

Sat, 08/16/2014 - 19:00 | 5103265 tvdog
tvdog's picture

"But the UK did tons of QE instead of actually fixing the economy"

UK and US both now have "finance economies," i.e., looting by banksters has replaced production as the leading source of economic "growth."

Sat, 08/16/2014 - 20:12 | 5103416 TeethVillage88s
TeethVillage88s's picture

Exactly. US, UK, EU, Japan it is a coordinated effort to keep a power status quo, to hold on, perhaps to wait and see if China Crashes and what develops from that...

The US is the Empire who developed after the British Empire. All follow us and the US Dollar. We are the Military, Financial and Economic Super Power.

We need to consider other Paradigms
We need more Ideas
We need to escape from the Economic "Fix"
We need to escape from Low Wages & Compensation that is proliferating in the face of "Low Economic" activity
But with $26 Trillion floating out there which may inflate prices if AVG Wages Increases or Full Employment were to Occur... Probably need some way to absorb all the Dollar in the Global System before any "Big Plan" take place.

Sat, 08/16/2014 - 17:30 | 5103007 Ban KKiller
Ban KKiller's picture

Tune in, turn on and drop out. Working on it.

Central planning is for serfs.

Sat, 08/16/2014 - 17:28 | 5103004 realWhiteNight123129
realWhiteNight123129's picture

Just Write-off the bad debt, have the gov default, backstop depositors and re-open the mint. Fixed.

Sat, 08/16/2014 - 17:45 | 5103042 TheReplacement
TheReplacement's picture

Backstop depositors with what exactly?

Sat, 08/16/2014 - 16:20 | 5102862 besnook
besnook's picture

aw c'mon. it is nothing a little kinetic destruction of labor and capital won't cure.

Sat, 08/16/2014 - 15:20 | 5102739 Comte d'herblay
Comte d'herblay's picture

Growth.  We will have to suspend at least temporarily, perhaps for the rest of ----the living today's---- lives, our notion of expansion.

We likely reached 'peak growth' 40 yrs ago.  Since 1980, we have been on a gradually decelerating path.  Combinations of companies whether thru merger, LBOS, b/ruptcy, and acquisitions have all caused a permanent destruction of jobs, careers, businesses, and advancement opportunities for all but the top 10%, more or less. 

There doesn't appear to be a reverse of this shituation on the horizon where companies divest, disassociate, or divide in any form.  Without the formation of new ones, growth is impossible.

 

 

 

 

Sat, 08/16/2014 - 20:05 | 5103404 TeethVillage88s
TeethVillage88s's picture

If we leave it up to Status Quo politics... then we are just victims. There is no real movement or will to reform Federal Government or the Economy. The winners have been picked and the winning corporations & Wealthy Individuals will eventually supply our basic needs since they have all the capital.

But what is a Domestic Capital Policy?

The Apollo NASA Program & Maybe Even Star Wars Programs show how whole Economic Industries can be created by Government Capital.

They say the Civilian Conservation Corps, a Federal Program, was very successful in putting young men to work rebuilding National Parts in the USA in the 1930s.

Clearly Certain Employment & Wage Sectors are doing great now while 90 Million people don't work. This is an Imbalance. Economic Imbalance leads to Social unrest, civil war, social violence, crime, lawlessness, collapsed borders, disease, rape, murder, war...

End Lobbying in the US Congress, End Gift Giving in Federal Politics... then Break Up the Economic Power Players, TBTF Banks, the Giant Corporations with the Power Equal to whole Countries... this is just a start of what has to happen. Look at who is controlling the US Government with Lobbying and Campaign Contributions, then look deeper at Gift Giving, these are the Entities that need to be Broken Up.

Sat, 08/16/2014 - 14:53 | 5102677 damicol
damicol's picture

simple logic tells me that a low bond yield  means that the cost of money is low.

 It is in other words cheap./

 Anything that is too cheap is worth less.

 therefore I up prices up 25% this last year.

It reduced turnover, or  an addition to GDP, but the profits  which I need to allow for the real value of $ being far lower and falling  down the shitter faster  faster than butt plug disappears up obummers arsehole, means I want more of them for the risk I take in  accepting them.

I dont care if turnover is lower and lose customers that cant afford the higher price, they can go get it elsewhere, but I am not going to subsidize them by their taking their fiat ponzi shit for real goods and services.

This can and only ever will end up in inflation, the Fed will not be able to raise interest rates without a mathematically calculable increase in inflation to offset its own higher interest payments.

The fact it wipes out your savings if any is irrelevant, and taxes will rise faster than the wage spiral upwards so real incomes, although falling now for 40 yrs will spiral downwards even faster.

The ultimate bubble which forms when all other bubbles are inflated and  there is no where else to go is hyperinflation.

That bubble sorts everything out, and will render billionaires penniless as easily as a janitor.

 The only ones who come out unscathed are the self sufficient, who do not need savings, own the roof over their head, and have no need to play games all day get zonked on drugs to survive of any variety,

Smart people will going down to the local GM dealer and cashing some clunker you found abandoned  for the most expensive thing you can buy on 100 % credit.

 Then selling it and using the cash to buy to buy a 100 grand of supplies of food  and a plot somewhere well off the beaten track to go to when the shit storm starts where they can grow some veggies.

Don't worry, that loan you got will never get repaid. or if it does it will be in $20,000 or $50,000 bills , the same ones you use to buy a morning coffee.

And pull the tracker from the GM first and drop the tracker onto a slow boat to China

 

 

 

 

 

Sat, 08/16/2014 - 19:55 | 5103389 TeethVillage88s
TeethVillage88s's picture

You have some good points.

Consider if you were a European from the Junkers Family or a German born to money. The Paradigm is that you get prepared for a career with education and family ties, then you expect both an increasing salary & Benefits and... to be able to increase financial worth of financial instruments or holdings.

Not saying that Nazis & Intelligentsia Jews from Europe streamed into the USA in the 20th Century and after 1945...

But suppose the plan was to allow Inflation of Executive compensation, allow selected families and Individuals Corporations to Prosper with Federal Contracts and Preference, and ... suppose the key was to Control and monitor a small "Basket of Food Commodities" and define Inflation in very narrow terms.

OR it probably was developed slowly with the best US Families and their Security Advisors over decades. What has Inflated:

A) Federal Budgets and Creation of Money through this
B) Monetary Policy to Inflate Dollar
C) Banking Charters to create money 10:1 to assets held, and the use of rehypothication of assets
D) Executive Compensation, Deferred Wages, Off Shore Accounts, Off shore Profits, Tax Abatements
E) Federal Employee & Executive Compensation
F) Social Program Payouts, MEDICARE/MEDICAID, Social Security, SNAP/Food Stamps, Pension Guarentee re-capitalization, TARP, Corporate Bailouts for GM Auto
G) Privatization of Public utilities, Military Installation Utilities, DoD Weapons Maintenance Facilities, DoD Troop Movement on Commercial Air, DoD Equipment Movement on Merchant Marines, All Oil & Gas Development, Storage, National Stockpiles, Municipal Water Systems, Toll Roads, Toll Bridges, Toll Highways, Airports, Water Ports
H) All Federal Contracting & Contract Pricing is Inflating.

So many people feel like they are Privileged... that they deserve high compensation, taxes lower than everyone else, and high federal contracts & Subsidies & Access to Government Guarantees like loan guarantees for Oil/Petro Transportation & Storage.

So I think it might be a Plan. Planned Inflation acceptable in certain sectors like Banking.

And Planned Rape of Fixed Income People.

Sun, 08/17/2014 - 05:55 | 5104452 The Blank Stare
The Blank Stare's picture

you forgot about the Soylent Green, Red and Yellow

Sat, 08/16/2014 - 14:03 | 5102521 honestann
honestann's picture

THE ONLY CURE IS DEFAULT or DEPRESSION.

Seriously!

Think about it a while.  What happens when people and corporations, and governments borrow and spend like crazy?  Answer: artificial economic activity.  Or to put this another way, by spending more than they earn (borrowed money), people/corporations/governments pull future economic activity forward into the present.

THIS HAS BEEN DONE IN SPADE FOR DECADES.

And what is the NECESSARY consequence?  Obvious!  Now they spend less while they pay back what they borrowed (plus more, namely interest).

The whole premise of articles like these (inspired by the banksters) is that everyone should KEEP borrowing their fiat, fake, fraud, fiction, fantasy, fractional-reserve DEBT until everyone is soooooo deeply indebted that nobody can pay back their loans... and the banksters take everything.

This would almost make sense in a world of non-fiat.  If people borrow money someone worked long and hard to create and save, they should pay back their loans.  But that is not the nature of fiat banking!  The banksters created NOTHING.  The banksters produced NOTHING.  They simply poked keys on a keyboard.  Period.

The entire economy of the world is completely insane and corrupt.  Of course the central banksters are primarily to blame, the lower-level banksters and financial corporations are next to blame, and even regular folks are to blame for being so stupid to borrow and consume when they be frugal.

The only solutions to the borrowing binge is... DEPRESSION or DEFAULT.

Since the [central] banksters are primarily at fault, the best solution is mass default.  Screw them!  Give your old unpaid-for junk back to the banksters and vanish or declare banksruptsy.

Otherwise... depression is the only solution.

Well, short of complete, total, abject slavery of the entire population of earth (except the banksters).  Which is, of course, their plan.

-----

PS:  The term "fiscal stimulus" simply means "borrow and waste more".

Sat, 08/16/2014 - 17:43 | 5103038 TeethVillage88s
TeethVillage88s's picture

Solutions? There has to many ideas about restructuring the current debt, reducing executives compensation, and doing it without hurting avg households:

A) Maybe change corporate money into a lower valued dollar like the Pacific Dobo Dollar (PDD) which doesn't exist yet... you could call it anything. Several problems exist with this Pensions, NGOs, and Institutions need to be protected some what unless it is an account owned by bankers. 2nd problem is you need bankers to implement any exchange of US Dollar denominated debt or account. 3rd problem is Wealthy, Big Corporations, and Bankers will scream to high heaven. 4th Problem is US Lobbying

B) Reducing the Size of US Corporations & TBTF Banks justifies lowering the compensation of executives. Anti-Trust Act and subsequent legislation and establishment of FCC was created for this. But FCC no longer has authority over Banks. And we have Lobbying in the USA.

C) Austerity is already happening as the velocity of money has slowed down, we have had capital flight from US Industries, there is little Investment in the way that would lead to millions of jobs with decent compensation... EBT/SNAP prevents photos of hungry people similar to the Depression, so Social Programs are holding the US together, ... So how could we plan new institutions to provide money & Credit immediately after a massive Default? Educational Loans Direct from the US Treasury, Federal Government Credit direct from US Treasury,... Create State Public banks like North Dakota in each State, Create mechanisms to incentivize more Public Banking with Stricter Accounting, Financial Ratings organizations, and Standardized Financial Instruments to limit Fraud and increase transparency.

D) Mass Default would look like International Agreement & Treaties on this. After all China, EU & USA are in trouble. And the Derivatives are sitting every where in many countries. Maybe the first phase would be to bring home Derivatives to countries from which they were sold.

E) Depression by what definition? EU & USA & UK and many 3rd World Countries have the basics in place now. We don't want to let things get worst, but I think we all want solutions to a Debt Jubilee, a Flawed US Dollar, Flawed ECB, Flawed Peoples Bank of China... And maybe solutions to War as an alternative to contracts for Resources, Solutions for Electricity or Energy, Solutions for Current Corporate System in which Corporations have the power of Countries and Corporatocracy looks like an Aggressive Empire that allows gaming the system by wealthy player and allows Usury and abuse of Consumers.

Sat, 08/16/2014 - 19:24 | 5103325 honestann
honestann's picture

Well, I was speaking a bit narrowly due to address the narrow context of the article.  Frankly, I don't think any "official" fixes or solutions are possible, because they are all controlled by the same predators-that-be who create the problems.

In the wider context you're addressing, there are no fixes that do not involve complete collapse and/or armed revolution.  As long as anything remotely like the current system exists, human life will remain degraded.

The entire economy of the world is based upon 100% pure fiction at the most fundamental level (namely, so-called "money" that isn't money at all, but debt).  Which is why no fixes or solutions are possible as long as anything remotely similar to the current system remains.

FIAT MUST GO.

And if fiat doesn't vanish, then mankind will vanish.  Fiat is death.  Debt is death.

From what I can tell, the entire world has been in depression for roughly a couple decades.  That statement is based upon my sensible measure of depression.  But that statement is also true based upon other reasonable measures of depression (and pretty much ANY reasonable measure).

And this is, in fact, necessary.  Why?  For the reasons I stated.

To understand, think about a personal example.  Assume you and your neighbor have both earned $50,000 per year, every year, for the past 20 years.

You were modestly frugal (or at least reasonable), spent $30,000 each year, and saved $20,000 each year.  Today, you have no debt and $800,000 in savings (probably more, because you saved real goods like gold and silver, not fiat).

In contrast, your neighbor acted like most gringos and most governments the past 20 years.  Every year he borrowed $20,000, spent $70,000 each year, and saved nothing.  Today he has a garage full of old junk, he has $800,000 debt (half interest) and no savings.

NOW... what do you think should happen?  To you?  To your neighbor?

Do you think the neighbor should or must REDUCE his consumption every year to pay off that $800,000 in debt?  Or do you think some economist should wave a magic wand and somehow, presto, chango... your neighbor should live just as luxuriuos a lifestyle as you?

Do you think that you should be punished, and live no better the next 20 years than your neighbor?  Or do you say, "Hey, my neighbor lived a far more luxurious lifestyle than me the past 20 years, so there is no reason I should not live a more luxurious lifestyle than me the next 20 years.

I hope so!

There ARE no fixes, and CANNOT BE any fixes.

Think about it.  Where did your neighbor get those extra goods and goodies that gave him that luxury lifestyle?  One way to understand this situation better is to assume the $20,000 he borrowed every year was... borrow from you!  You saved $20,000 per year, and he borrowed $20,000 per year.  While maybe he didn't borrow from you directly, we can assume he did to help illuminate this issue and make the impact fully real to you.

What is my point?  There is NO FIX.  The "problem" can be solved in either of two ways (or somewhere between).

#1:  Your neighbor stiffs you.  You now stop lending to him, but you have no savings.  Your $800,000 of savings is GONE.

#2:  Your neighbor pays you back.  You now have your $800,000 of savings back, but your neighbor must... what?

OOPS!!!  Your neighbor doesn't have $800,000 to pay you back... unless he borrows it from someone else (and remains in debt, and "ahead of the game").  By "ahead of the game", I mean he "spent more than he earned", while some corresponding saver "earned more than he spent".

In the very best case (which will almost never happen), let's say the neighbor sold his home, sold all his cars, sold his old yacht, RV and other junk he purchased over the years, and managed to come up with $800,000 to pay you back.

Now.  What is the situation here?

Your neighbor is BROKE.  He owns NOTHING but the clothes on his back (if that).  He will have to rent, because he has no money (and no down payment).  Your neighbor earned as much as you over those 20 years, but he is FLAT BROKE.

You have $800,000 in savings.  And you still own your home.  And you still own your car.  And you still own a small quantity of stuff that you purchased over the years (much less than your neighbor, because you were semi-frugal).  But again, you have $800,000 in savings.  Your neighbor is flat broke, and you are now able to retire and live a moderately luxurious life.  Your neighbor is broke, and must work until the day he dies.

The only way to "FIX" this (as far as your neighbor is concerned) is to SCREW YOU.  In other words, not pay you back, and scale back his spending from $70,000 per year to $50,000 per year (his earnings).

In other words, the ONLY WAY to AVOID THE DEPRESSION your neighbor must suffer is... to DESTROY YOUR LIFE.  And that is, indeed what usually happens, and what is being planned and executed in the world today.

Unfortunately, the real world of fiat, fake, fraud, fiction, fantasy, fractional-reserve debt-bits is even worse.  Your neighbor will find some other sucker AKA prudent saver to lend $20,000 per year to him, since you wised up and cut him off.

This can only continue because NOBODY earns money for your neighbor to borrow! The predators AKA banksters simply tap a few keys and credit your neighbors checking account.  To do this costs the banksters ZERO.  They didn't earn anything, they didn't produce anything, they did nothing but tap a few keys on the keyboard.  But guess what?  When the banksters receive payments from those "customers" who do repay their loans... the banksters keep the interest for themselves!  Which means... they get to buy real, physical goods and goodies without ever in their lives doing any productive work whatsoever.  Which is why banksters are ALWAYS the richest slime everywhere on earth, and banks are always the biggest, fanciest buildings.

In other words, the entire system is constructed to reward the NON-PRODUCTIVE.

#1:  The borrower who never repays is rewarded.

#2:  The bankster who does nothing productive is rewarded.

#3:  The saver is royally screwed (by theft, inflation, higher prices).

-----

In a sane world (no fiat), at least the total debt in existence could not exceed the total savings.  Too much debt would still be a big problem, especially if the debt was not incurred to create productive enterprises.  But at least the net debt could not exceed the net savings, much less total net wealth.

But think about it!  In the insane world of fiat we live in, the total debt can easily (and probably does) greatly exceed the total wealth of everything of value in the world (not just total savings).  Because there is NO LIMIT of how much debt the banksters can issue, they can LITERALLY issue more debt than the value of every last item of value on planet earth... 10 times over, 100 times over 1000 times over.

Which means what?  Which means, by this inherently corrupt scheme, the banksters can LITERALLY be owed more than everything of value on planet earth.

This indeed has been the explicit plan of the banksters since at least 1913.

The real situation is so insane, and so surreal, that no alien from outer space would be able to believe any sentient species could create or accept such extreme insanity.  But... that's where we are today.  And when the SHTF, you know what the predators-that-be have planned.  Not only will everyone in debt become a literal overt slave to the banksters (who produced NOTHING), but the predators-that-be will declare all savers to be responsible for the debts owed "by their brothers in debt", and thereby also delivered into literal and overt slavery --- unless they start shooting, and don't stop until every bankster and government official on earth is dead.  Fat chance of that!

-----

I'm not saying the problems you identify don't exist.  They do!  I'm just trying to point out why no solution exists except the extermination of human predators, starting with [central] banksters and those who call themselves "government".

NO solution exists that references any existing law.  The only way a solution is possible is for all human beings to accept, recognize and acknowledge that all these fictions ARE in fact fictions, and DO NOT EXIST:  "government", "corporation", "authority", "nation", "law", and on and on and on.  In other words, the only legitimate human interactions are fully voluntary interactions.  Period.

Sadly, human beings are too stupid and too brainwashed by decades of public education and mainstream media to comprehend this fundamental facts, or to take appropriate actions (namely, shrug).

Sun, 08/17/2014 - 05:37 | 5104436 Captain Obvious.
Captain Obvious.'s picture

Prof. Steve Keen has a viable solution.

http://www.debtdeflation.com/blogs/

The debt is all a legal fiction-smoke and mirrors.

The solution-print more fiction. Enough to cancel all the debt. Give Johnny Citizen his share on the proviso that he first pay off his debt with it.

If he has no debt- he gets to spend it as he will, on goodies of his choice.

This will be poison to the bankers.

What's not to like?

 

Sun, 08/17/2014 - 17:10 | 5106055 honestann
honestann's picture

What you are saying... sadly... is that the solution to absurd fiction is... more absurd fiction!  That's not a real solution.

Sure, if "they" printed up $500,000 of NON-DEBT dollar bills for every human being in the USSA, and simply handed it to them with the requirement that everyone must FIRST pay off any debt before spending or saving the rest... that would erase the debt of most people in the USSA.  And it would do so in way that attempts to not punish savers.

But this doesn't make things right, and it doesn't remove the scam created by the banksters, and doesn't do anything for the future.

And what is DOES do is... inflate away the value of the savings accumulated by all savers.  So while they received $500,000 for no work in this example, the rest of their savings is mostly vaporized.  Why?  Because the moment everyone receives $500,000 the value of each dollar becomes one-tenth cent (plus or minus).

PS:  If I'm not exactly addressing what he proposed, that's because I couldn't find his proposal at the link you provided.

FIAT and all fractional-reserve practices must be eliminated, otherwise the banksters still own everyone and everything, including all power to do anything they want (including control all governments).

Sat, 08/16/2014 - 22:33 | 5103704 Gadfly
Gadfly's picture

You're both honest and smart.  Well done.

Sat, 08/16/2014 - 12:33 | 5102270 moneybots
moneybots's picture

"Europe hasn’t recovered, because it hasn’t let itself. Too much fiscal austerity and too little monetary stimulus have, instead, put it more than halfway to a lost decade that’s already worse than the 1930s."

 

100% of booms end in a bust.  Period, end of discussion.

The idea that Europe hasn't recovered because it hasn't let itself, is false math.  The problem is the opposite.  They are trying to prevent the bust that the boom has mathematically prescribed.  Thus they can't recover, as they have never hit bottom.

As Mises said, there is no preventing the final collapse of a credit fueled boom.  Math is ALWAYS right.  Math ALWAYS wins. Europe and everyone else is trying to prevent the final collapse.  It is going to happen anyway.

There can never be enough stimulus.  The nasdaq stock bubble wasn't big enough?  The housing bubble wasn't big enough?  The sovereign debt bubbles are not big enough?  100% of bubbles burst, so what bubble can ever be enough stimulus?

Fiscal austerity.  How has Japan running government debt to GDP to 250% worked out so far?  Doesn't look like a lack of austerity is working out so well, does it?  Abe's double down QE has 2nd quarter GDP crashing how much, 6% is it?

There is no printing or spending our way out of this.  It only changes the nature of the crash.

 

 

Sat, 08/16/2014 - 16:34 | 5102897 besnook
besnook's picture

be careful with your math. you are talking banker/.gov math, abstract math. we are already in early stage collapse but the numbers say we are not in depression, not even recession. they can sustain this myth to infinity as long as they are in charge of the model. mark that to market.

Sat, 08/16/2014 - 11:21 | 5102016 localspaced
localspaced's picture

Europe is fucked right now. People want more stimulus and more of the european superstate that was never even supposed to be and got us in this mess in the first place. Alternatives aren't even considered. 

Europe is old, cranky and out of ideas. This crisis will last until the union cracks. 

I'm getting fed up with it. If you know your European history like I do you know that this was predicted to happen by basically anybody with some political, historical or just plain old common sense.

But hey...if you criticise youre painted as a nutjob that is anti europe and wants to go back to world war 2. I'm done pointing out the emperor has clothes...now I'm just gonna laugh when his balls freeze until his dick breaks.

Sat, 08/16/2014 - 10:56 | 5101913 Ward cleaver
Ward cleaver's picture

Any Gentiles left in position of authority?

Sat, 08/16/2014 - 12:03 | 5102156 CheapBastard
CheapBastard's picture

Hank Paulson professes to be Mormon. The greedy diseased parasitic mind cuts across religions, races, genders, etc.

Sat, 08/16/2014 - 11:54 | 5102125 radiobomb
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ffs, do you really believe that if [insert any race here] didnt exist that this FUBAR would be different ?  Anyone  still hung up on religion needs to think of the political parallel - it's like saying the red team, or blue team would have been perfect. Pure BS. Same for ANY religion btw.... so childish to think that money & power are not the self-serving & auto-filtering energies at work here. Read the recent Cognative Dissonance ZH post on the BIS for example of global manipulation.

Sat, 08/16/2014 - 16:36 | 5102903 besnook
besnook's picture

you are correct but there seems to be a dominant group responsible in this case. that would be difficult to deny unless you are in a hasbara fantasy.

Sun, 08/17/2014 - 19:56 | 5106539 radiobomb
radiobomb's picture

dominant group ;  those in un-elected positions of power, bilderburgers/Eu policy makers/BIS/ and others that dictate policy to the puppets in gov everywhere..... & all races are represented in those groups.

 Read the recent Cognative Dissonance ZH post on the BIS for example of global manipulation, and his latest post on language manipulation to see further into this .

thanks.

ps, i am an athiest, but that doent mean i want an athiest only planet !

 

Sun, 08/17/2014 - 10:19 | 5104786 Gavrikon
Gavrikon's picture

There does appear to be a dominant group (of exceptionally high IQ) that is using other groups (of exceptionally low IQ) to destroy white civilization.   

Sat, 08/16/2014 - 17:53 | 5103068 TheReplacement
TheReplacement's picture

That is the best way I've seen it put.  Defining the actual group (or subset), that is harder.

Sat, 08/16/2014 - 09:22 | 5101644 AdvancingTime
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 Both people and governments have lived beyond their means by taking on debt they cannot repay. Over the last several decades we have created entitlement societies built on the back of the industrial revolution, technological advantages, capital accumulated from the colonial era, and the domination of global finances. Promises were made on the assumption that the advantages we enjoyed would continue.

Ever greater prosperity and entitlements were to be sustained through debt financed consumption growth. In that eerie fantasy world, debt fueled consumption was to be the catalyst to bring about evermore growth. Now reality has begun to come into focus and it is becoming apparent that this is unsustainable. The entitlements and promises that have piled up have become overwhelming. More on why this system will fail in the article below.

http://brucewilds.blogspot.com/2014/08/modern-monetary-theory-is-wrong-d...

 

Sat, 08/16/2014 - 12:07 | 5102173 geno-econ
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Entitlement  of the wealthy also continues with "captains of industry" playing financial and tax avoidance games in a global economy with no national loyalties. It is certainly a new game the US is losing, with China gaining real  wealth and industry. Current strategy is we can print forever and control global resources with mighty but impotent military ( on foriegn soil) ---thus trade wars are also new strategy which seems to be impotent as well

Sat, 08/16/2014 - 09:00 | 5101630 Reaper
Reaper's picture

There is no good wise honest bureaucrat making central plans in the EU or any where else.    The fantasy was if they're immune from the political process, they'll rise to a higher level.   All dreams end when you wake up.

Sat, 08/16/2014 - 08:25 | 5101575 MalteseFalcon
MalteseFalcon's picture

The people have been looted.  Time for the oligarchs to loot each other.  That means war.

Sat, 08/16/2014 - 09:28 | 5101648 AdvancingTime
AdvancingTime's picture

I regretfully give you an up-vote!  Making money from the pain of other is big business. National pride, political agendas, religious and ethnic hatreds are some of the biggest roadblocks to world peace. Those in power love to fan the flames of war.

The true reality is that across the world few mothers want to see their children killed and most farmers want to be left along to raise their crops and earn a living. More on the subject of war as a solution to conflict in the article below.

http://brucewilds.blogspot.com/2014/05/war-and-what-is-it-good-for.html

Sat, 08/16/2014 - 08:18 | 5101565 nmewn
nmewn's picture

OT...Sharyl Attkisson, hanging on like a pitbull, not being distracted:

"An email obtained by Congress shows the top official for Healthcare.gov at the Centers for Medicare and Medicaid Services under the Department of Health and Human Services, Marilyn Tavenner, instructed the agency’s top spokesman to “Please delete this email.”

"The instruction appears significant for several reasons: First, the email to be deleted included an exchange between key White House officials and CMS officials. Second, the email was dated October 5, 2013, five days into the disastrous launch of HealthCare.gov. Third, federal law requires federal officials to retain copies of –not delete– email exchanges. And fourth, the document to be deleted is covered under Congressional subpoena as well as longstanding Freedom of Information requests made by members of the media (including me).

http://sharylattkisson.com/hhs-healthcare-gov-official-delete-this-email/

I love this woman ;-)

Sat, 08/16/2014 - 12:01 | 5102146 CheapBastard
CheapBastard's picture

Good work, nmewn. Seems as if the rot spreads deeper every day.

Sat, 08/16/2014 - 02:01 | 5101253 Flybyknight
Flybyknight's picture

It couldn't happen to a nicer bunch of folks. After escaping German domination thanks to the Russians (The USA provided some assistance) they went along with the fear-mongering promoted by their best buddy Uncle Sam isolating Russia.  Central planning proved the downfall of the USSR and a new era of peace was welcomed by all.  The west then decided there should be an  absolute free market  in Russia. With the government in dissarray this resulting in the Oligarchs and wealth imbalances that characterise Russia (and Ukraine) today. Russia cooperated with world trade rules and generally was a good world citizen. Uncle Sam became afraid that Europe's industrial, cultural and financial strengths combined with Russia's  energy  and industrial resources would  present a powerfull alternative to his own.  He hatched a plan to drive a wedge between Russia and Europe. Shoot down a civillian airliner and blame it on Russia. Europe swallowed it Hook Line and Sinker, despite plentiful evidence to the contrary and proceded to cut off its nose to spite its face by engaging in sanctions.

Well done Europeans. America has its Kardashian watching, obese, nonpassport carrying sheeple but you win first prize for dumb.

Sat, 08/16/2014 - 19:40 | 5103362 ajax
ajax's picture

 

 

@Flybyknight  Just make certain you keep your grotesque Kardashians: we're not dumb and we have this:

http://www.ina.fr/video/VDD11038974

and this:

http://www.dailymotion.com/video/x1ql4lu_les-femen-denoncent-le-fascisme...

 

Sat, 08/16/2014 - 06:45 | 5101479 Jano
Jano's picture

Everything, what happens in the Ua, is CIA and MOssad business. EU is touched only on the sidelines, if sanctions are imposed, to close a loophole. Europe has no say and is blackmailed by US nuclear weapons. Germany is occupied state and there is no freedom treaty between US and D, since the capitulation in 1945. D is still ocupied territory and must pay all the costs of occupation plus delivery industrial goods to US AT COSTS. Look at the german cars in US, the extras and the equipment and compare it to the prices on the german market. The same applies for all other exports of german goods to US.

My conclusion: EU and firstly Germany are vasal states, occupied and blackmailed by US jews and Tel Aviv jews. EUrope is in agony and is dying.

Sat, 08/16/2014 - 00:50 | 5101164 limacon
limacon's picture

The Head rots first , and infects the body .
The only cure is amputation.
Roll on the tumbrils !

Fri, 08/15/2014 - 22:42 | 5100891 Joebloinvestor
Joebloinvestor's picture

They can always reassure themselves that at least they aren't fighting radiation, yet.

Fri, 08/15/2014 - 22:40 | 5100883 williambanzai7
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Fri, 08/15/2014 - 23:26 | 5100996 Lordflin
Lordflin's picture

Spent the morning with a fellow who had set up my beehives, was teaching me the ropes, midst swarming masses of bees... thought that would give me nightmares... and now this... thanks William. You can be really sick some times.

I am 62 years old... never in all of that time have I seen the Western world so absolutely void of leadership. I do not mean good leadership, that has been absent for a long time, I mean any leadership. It is like stepping into the streets of a big city and finding them empty... Everyone is gone.

The only thing left are the central banks and any pretense otherwise is apparently a thing of the past... surreal as hell...

The masses hardly seem notice.

National borders have been over run (with the active participation governments who appear deliberately intent on committing suicide). Looters are everywhere... don't mean the idiot running down the street with a flat screen TV, which he will likely find is useless to him a year from now, but rather the ones in government, in uniform, or on Wall Street. These latter, by the way, are no less idiots than the fellow with the flat screen TV.

And I just want to plug back into the matrix.

Well, not really... I suppose that if I must be party to a world imploding that I might as well enjoy my ringside seat.

Sat, 08/16/2014 - 19:20 | 5103314 ajax
ajax's picture

 

 

@Lordflin   Enjoy your ringside seat and the fresh honey!

Sat, 08/16/2014 - 14:59 | 5102694 foxmuldar
foxmuldar's picture

So will l you chose the Red pill or the Blue pill?

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