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European Credit Crunch Hits Broad Economy As M3, Private Loans Collapse
The primarily sovereign credit crunch in Europe, which has resulted in part due to the ECB's disastrous, and since reversed decision just like in 2008, to hike rates early in the year, only to go ahead and not only cut but expand its balance sheet by a record EUR 800 billion in the past six months, has finally started trickling down to the corporate, and more importantly financial levels, where as was just reported today, the broadest monetary aggregate, the M3, rose by a only 2.0% in November, dropping by a whopping 60 bps from October (keep in mind this is a huge amount on a number that is in the tens of trillions), which happened to be the biggest annualized contraction change since 2009. What is worse, and what confirms that the daily "near default" state Europe finds itself in every single day has sent shockwaves of uncertainty around the continent, is that the loans to private businesses grew at just a 1.7% rate in November, a plunge from October's 2.7% and missing expectations of 2.6% by a wide margin. Said otherwise, corporate credit (far more important than its sovereign equivalent) is being turned off. And as has been widely discussed without credit flowing, there is not only no growth, but the threat of imminent economic depression. Lastly, that this has happened even as the ECB's balance sheet has risen from EUR 1.9 trillion to $2.7 trillion in 6 months is truly humiliating from Trichet as none of the money he injected into the banks has made it to the broader public, and instead all has been used to prop up Europe's failing banks, something we know all too well here in the US.
A chart showing European M3, and the all too obvious downward inflection point:
And here is Reuters on the issue of why Europe is likely to not only lower rates to under 1.00% but also print, without sterilizing, thereby really dragging out the ghost of Weimar future out of the wheelbarrow boneyard.
Loans to private sector firms in the euro zone fell in November while growth in lending to households slowed, European Central Bank data showed on Thursday, adding to the case for an interest rate cut. The drop in funding to companies increased fears that the region faces a looming credit crunch, an issue of growing concern for the ECB as the worsening sovereign crisis makes firms and households increasingly wary about taking on debt, weighing on the economic outlook.
In an attempt to kick-start loan activity, the 17-country bloc's central bank conducted last week its first-ever three-year funding operation, which saw banks take up almost half a trillion euros.
In November, loans to the private sector grew at a rate of 1.7 percent year on year, Thursday's data showed, coming in well below analysts' expectations of 2.6 percent and the 2.7 percent growth seen in October.
"They are a very soft set of numbers, Societe Generale economist James Nixon said. "If banks were to start to seriously shrink their balance sheets, that would be quite a significant negative for economic activity. The good news is we don't see that - yet."
The flow of loans to firms dropped by 7 billion euros after growing by a similar amount in October. The flow of mortgage loans rose by 8 billion euros after an 18 billion drop in October. The annual growth rate of mortgage loans remained at 3.0 percent.
Euro zone M3 money supply -- a more general measure of cash in the economy -- grew at an annual 2.0 percent in November, down from 2.6 in October and below expectations of 2.5 percent. Decreasing to 2.5 percent, the three-month moving average of M3 growth remains well below the ECB's reference rate of 4.5 percent, above which the bank sees dangers to medium-term price stability. Economists said the figures made it more likely the ECB would look to offer the struggling economy more support by cutting interest rates further from their current record low of 1.0 percent.
"The sharp slowdown in euro zone money supply growth in November reinforces belief that underlying euro zone inflationary pressures are easing and that the ECB has ample scope to cut interest rates again in the early months of 2012," IHS Global Insight economist Howard Archer said in a note to investors.
Of course, for anyone who thinks that Bernanke will let the ECB print alone, and send the EUR to parity with the USD, we have a CDO cubed collateralized by the Maginot line to sell them.
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All these numbers will go negative as european banks scramble to delever. ECB's three year loans give them time to get their balance sheets in order and they will be forced to do it. Perfectly rational on a bank by bank basis but ugly for the european economy.
I WARNED about this REPEATEDLY, but was ignored and mocked by the zerohedge readership. We are facing the biggest collapse in aggregate demand in history and its time for central banks and governments to GET SERIOUS. We need BOLD monetary and fiscal stimulus programs to get people spending again or we risk a total cedit collapse and decimation of peoples' equity porfolios. Do you people realise how much exposure US banks have to Europe? Do you realise how leveraged their balance sheets are!? The world is crying out for LEADERSHIP and all we are seeing is indecision and impotence.
We have had bold stimulus, albeit to the wrong people, and it has not stopped the collapse. It was baked in the cake a decade ago and it's too late. The central control of interest rates is a dismal failure. The authorities have only two choices, a deflationary depression or an inflationary depression. I vote for deflationary, at least my savings will be worth something. But what I want is irrelevant, we will have the latter, triggered by what is happening now.
Buy PMs now (or soon) and be patient.
I agree with you there. The one thing that the powers that be are fully aware of is that inifinite growth is the only thing that will keep the debt based money system moving. Bold moves by the central banks or not, the outcome is guaranfuckingteed, as infinite and exponential growth are completely impossible. Death of currency by inflation or death of currency by deflation - the death comes either way.
It really is that simple. So why do so few people grasp this? Over the holidays my best friend from HS stopped by my parents house with his 16 YO step son. There are about 8 of us engaged in this conversation (what is money, what is debt based money, what does it mean, etc.). About 5 minutes into the conversation the high school junior says, "so money is debt with interest... it must grow exponentially". I wanted to cry. Non of the adults got it.
this discussion is very important and widely ignored. not only that but much of the investment world is based on growth at an accelerating pace. we are a hungry, overpopulated finite world running out of clean air and water. rock and a hard place.
"The central control of interest rates is a dismal failure"
This is simply false. Our Federal Reserve has managed to keep interests rates at record lows despite this economic turmoil, which is a remarkable achievement.
In that case, let's control all prices. Then all prices can remain low and we can all live like kings!
The world is not black and white. You have to accept the value of price controls or you are simply an extremist/purist. There is a time and a place for price controls, and a time and a place for liberty. Purist libertarians need to understand that THERE ARE NO UNIVERSAL PRINCIPLES.
Funny but that is exactly what some jack boot is going to be saying to you with his boot on your throat.
pods
i have read the term jack boot for years and never known its real meaning. thanks to our information revolution i, in seconds without moving my wide ass, found out it refers to boots that are "jacked" or reinforced with chain mail to parry sword blows. my new fave has wings like a late fifties/early sixties u.s. car's tailfins to protect the knees. used by cavalrymen.
the term is later used for the hobnailed, iron heeled german infantry boot where we get into the door kicking down/neck stomping mentioned above.
http://en.wikipedia.org/wiki/Jackboot
I am not a purist. I am pragmatic. You are only supporting price controls for one item. Please tell me what other items should have price controls. The "time for price controls" (I assume we are still discussing interest rates) apparently has been almost 100 years now.
You know as well as I that price controls of anything reduce production. The reduction of production of capital leads to depression and destroys banks (obviously).
Stupid is a UNIVERSAL PRINCIPAL.
The fact that we were manipulated rather than educated is a UNIVERSAL PRINCIPAL.
The fact that ill founded policy will eventually fail and that many will suffer is a UNIVERSAL PRINCIPAL.
The fact that almost all people follow and that very few are independent thinkers is a UNIVERSAL PRINCIPAL.
The fact that all leaders and schools of thought will eventually be found wanting is a UNIVERSAL PRINCIPAL.
The fact that people falsely assume that thinking about their beliefs is thinking is a UNIVERSAL PRINCIPAL.
The fact that people live in their status quo, that they don't see beyond that status quo and that they don't know that they aren't seeing that which is beyond is a UNIVERSAL PRINCIPAL.
This is just a start. We should not expect to see UNIVERSAL PRINCIPALS from within a status quo.
I intend no personal malice in this rant. I am simply not happy with a world that raises us to be blind.
This is remarkable too. Watch me type....
.
.
1.00%
Yes, and lets not forget the $244 plus TRILLION in derivatives on the banks books. Financial bets sitting on the table 20 times greater than all the money in the world markets. If even a fraction of these collapses, the next crash will be game over. Read the chart on page 24
Office of the Comptroller of Currency
OCC Quarterly Derivatives Report Q1/11
http://www.occ.treas.gov/topics/capital-markets/financial-markets/trading/derivatives/dq111.pdf
Godzilla is at our door, and all the politicians think they can get away with painting its toenails.
RIGHT MDB! Got to get people SPENDIN again!
Might I suggest buying more 'Forever Lazy's'? Cant ever have enough of those 'consumer neccessities', hell look at the thing, dont even have to take it off to take a dump!
BUY MORE FOREVER LAZY!! Save the WORLD BANKSTERS! FOREVER LAZY COMMERCIAL - YouTube
Forever lazy....this would be a good slogan for a campaign on going braless.
After my recent trip to Florida, I'd have to say that would be a mixed blessing. The older ladies would lap it up, the younger ones not so much.
I just gots me 5 of dem sets for da hole family!
So in terms of monetary policy, what do you recommend? If we create more credit, we assume more future debt issuance. If we increase the debt, the affect of real growth (GDP) will be decimated by the increase in taxes to fund the debt, and interest on the debt.
Taxes do not have to be increased, as we can simply borrow the money. Interest rates will not rise for two reasons:
1. China depends heavily on our consumption of their exports and so they must conitnue to finance American spending
2. Our Federal Reserve is able to buy our government's debt and bid up treasury prices, which is also known as quantitative easing
1. China and Japan are actively dumping the dollar (alongwith Russia) and creating trade agreements that do NOT depend on the dollar.
2. Fed buying government debt and treasuries is a game of pass the buck. Interest rates cannot remain low forever. At this point in the game a small incremental increase of interst rates will push debt/GDP ratios up like the EU.
Taxes will be increased on the people through higher prices of goods because of cost-push inflation created by QE. Borrowing money from oneself is impossible to keep going forever. I can't see how taking money from the left hand and passing it to the right hand will make me whole while the debt still remains and grows.
are we certain that mdb is not teasing us?
I am short, actually, so not everyone minds current developments!
But why should people go out and buy crap that they don't need. Why do you have to have an apple 4s when you already have a 4. It is ridiculous. And guess what, no amount of money sloushing around is going to get people to do that. That mentality is over. The whole system needs to reset. The bankers will try to inflate and do what you say but people won't buy in to it. The next result, a brutal crash and high inflation. I am so close to pulling the trigger on silver I can't stand it. The only thing stopping me is that it looks like it will go down more. It's incredible. The PMs will be one of the few things standing at the end of the day in a couple years.
the world is crying out for leadership?
milliondollarbonus, Germany had people just like you just after WWI.Does Weimar ring a bell?
You can't dig your way out of a hole.
Europe is collapsing under it's own socialist weight. Europe and America have kicked the can as far as it will go. Time to pay the piper.
You're mistaken. Weimar wasn't a failure in itself. The fact that Germany had to bleed dry to pay the bankers who made the war loans killed Germany financially. The only way out for Germany, then so called Weimar Republic was to print and pay the bankers with diluted shit.
We could all live well and prosper if we took the bankers out behind the wood shed.
I have also warned REPEATEDLY, but also ingored, that there is far too much credit and debt, and an asteroid full of CDS' flying above our head. Bold leadership would outlaw CDS's. Drastically bring down credit, and have debt haircuts. Only then will the world enter a new era of peace, harmony and progrogress.
I have also warned REPEATEDLY, but also ingored, that there is far too much credit and debt, and an asteroid full of CDS' flying above our head. Bold leadership would outlaw CDS's. Drastically bring down credit, and have debt haircuts. Only then will the world enter a new era of peace, harmony and progrogress.
But seriously, why call it Money Supply? It's Debt supply.
In fact, between those two words, both the Eu's and the world's problems lie. Supply side greed and debt-money.
Try this experiment. Call your cash Debt Notes. And your Credit Card a Debt card. I suggest that a sharp slowdown in spending might ensue.
Hwo will you pay for that?
a. With my debt card
b. With Debt notes
Changes everything. Relaguaging Debt into Credit and Money have left us blinded to their real meaning.
ori
/world/
Gets even worse if you look at a "paycheck" and realize that you are being paid other people's debt for your time and energy.
pods
Rasputin!
Maximilien François Marie Isidore de Ro...
...n Paul.
:-P
... con usual lo tec hw.
I think within the next 3 months there is going to be 1 week where the Euro will lose 800 pips + and it still wont be the bottom. I will look to cover around the 1.10 area
No way for Ben to print unless Oil drops to 60-70 dollar range. Bens got one more year in office then Ron Paul kicks his ass out and hopefully charges him for treason.
Unfortunately, knight99 , that will only be the situation in a sensible world and, as we are all aware on ZH, we live in frickin' Bizzarro world.
What will, more likely, happen is that the current POTUS will be re-elected and keep Helicopter Ben in because of the 'marvellous' job that he's been doing so far.
Of course lending is collapsing. Who the hell is going to expand a business [or start one up] in an environment where the entire social order is collapsing thanks to the idiots in charge? Europe is a basket case of regulations that hassle business to death. Fuck you technocrats.
http://vegasxau.blogspot.com
Vegas,
You are exactly spot on, small business that drive employment are either slowing, shrinking or outright closing on purpose. They are tired of fighting the up hill battle of fraud, corruption, regulation, law suit's, margin squeeze, cost of business etc.
All this fine central planning has created a fine environment to do business in, "Hope, Hope and Change" you will go broke in.
I could not imagine trying to run a business over there.
It is tough enough to merely ship something INTO the EU.
Now where did I write down that harmonized code..........................
pods
http://confoundedinterest.wordpress.com/2011/12/29/italy-bond-sale-malai...
Help defeat NDAA :
https://wwws.whitehouse.gov/petitions#!/petition/veto-national-defense-authorization-act-2012-several-provisions-bill-pose-threat-civil-liberties/GLfhBn6D
Try this link:
http://www.whitehouse.gov/webform/comment-legislation?billname=H.R. 1540 - National Defense Authorization Act for Fiscal Year 2012
It's more direct.
Edit - oops, wrong issue...
What is to be expected when politician's whose only real expertise is selling themselves for votes are controlling something they know nothing about?
They refuse to balance their books, which most households are capable of.
They hire "expert" consultants who are really manipulating for their own gain as people forget that Goldman helped Greece hide their true financial status when they entered the Euro.
This whole system needs an overhaul as we cannot continue to allow ourselves to be led by incompetence and self interests.
there's nothing wrong with banks, both European and American, that can't be easily fixed with a few gallons of gas and a match.
alien-IQ , with the price of gas what it is at the moment ...
Maybe a couple boxes of matches and some old newspapers. :-D
Yeah let's not go around wasting some fine gasoline now.
any real assets look cheaper and cheaper when you read these!
Petroplus told this story 2 days ago
Dang! ANOTHER centrally planned central banker money printing FAIL?
Well....guess theyll just have to try that yet AGAIN!
Market up a HUNDO with Bank and REITS SOARING!!!!
Like any actual fundamentals matter anymore. We are way way past that now.
The main driver of fundamentals is that the currency market is and has been experiencing high swings of velocity. With all Central Bank interest rates tied together at near zero, this is only going to increase. Watch as all prices rise over the next year. Thank you Bernanke, for he's a jolly good fellow!
[kazoo!]
Come up with something new
“Try to wrap your mind around the amount Draghi gave away just last week; nearly $600 billion! Apart from TARP, this is the biggest heist on record, and yet, people still can’t figure out what’s going on. I’ll tell you what’s going on. The people are getting fleeced bigtime. How much more do you need to know? But this was a bond bubble, pure and simple; brought on by easy lending, unregulated capital flows, and poor risk management. And now the bubble has popped, which is why the banks are sinking fast. They bought this crap (bonds) from Greece, Portugal etc. to make a few more bucks and failed to see the risks. And, they got burned. So what? That’s capitalism, right? “You pays your money and you takes your chances”. No whining. But banks and bondholders are not allowed to lose money anymore, right? Even if they’re the ones who inflated bond prices to begin with, and even if they’re the one’s whose balance sheets are presently underwater due to their own stupidity. So, we have to change the whole system to accommodate them, which is why their agents–like Draghi–occupy all the positions of power, so reckless speculators won’t have to suffer the consequences of their poor choices. This is what we’re up against; a small group of obscenely rich people who have totally rigged the system and who are grabbing more and more of the wealth for themselves while they preach austerity to everyone else. Even so, it’s pretty amazing when people get ripped-off for $600B and it doesn’t even make the headlines.”
http://www.counterpunch.org/2011/12/28/the-600-billion-ripoff/
Most of yesterday's losses erased.
"Like It Never Happened"
Many Dow stocks still charging up to new 3-year highs.
Treasuries still well bid.
Chain-selling of commodities continues.
100% control of the "Financial Market Miracle" by Bernanke and Geithner, the greatest of all time.
At least we know who one of the fascists are on ZH.
Thanks for revealing yourself as such, RoboTraitor.
Or one of the great comedians on ZH...
The greatest of all time....lol
DOW nowhere near where it was 4 years ago, silver and gold 3x-4x baggers over the same time....sucker.
Agreed. This is a rare buy opportunity in a secular bull market in PMs.
And even after all the trillions and trillions of stimulus, TARP, back-door bailout bullshit that's been going on for 3 years, the DOW is still 14% below it's all time high.
Declining M3 is a direct result of all the monies going either to defunct banks or broke sovereigns. The result is the economy being strangled on the vine. Resources that would have found their way tothe economy have been redirected to banks and sovereigns. Only way out of this is to downsize govt and shutter the weakest banks. Otherwise the private economy will continue to contract, reducing tax revenues and eventually collapse upon itself.
The US M2 is doing the same thing. See charts at end.
After all the monetary stimulus they have thrown at the banks and Italy, it is like that "And all I got was this t-shirt." Italy Bond Sale Malaise And The 7% Solutionhttp://confoundedinterest.wordpress.com/2011/12/29/italy-bond-sale-malai...
It's truly amazing to me that the most important element of economic activity, the one that all central banks and governments are in a panic to increase, is how much money people and businesses are willing to borrow. If only everyone was willing to once again increase their debt levels, we could breath a sigh of relief that we were on the road to recovery. I must have time-traveled from an earlier age, because I have the quaint notion that economic activity involves people making actual things.
That truly is a quaint notion....when did it ever actually work that way ? ;)
Ummm, up until 1913? Isn't that when the Fed was established?
Well,well....European banks have not been aggressive Bond issuers during the fall of 2011, thats for sure
3-mo. T-Bill yield now negative
http://www.bloomberg.com/markets/rates-bonds/government-bonds/us/
Paper Rules!!!
Bail out works. Oops it works only for a few (1%?).
What amazes me is to hear the astonishment in US circles about the current collapse of Euro/UK zone. Sanctimonious "we told you so" BS. Forgetting the incredible under the carpet fall out of the previous US tsunami, hidden into the folds of EUro shadow banking ponzis and watered down on Euro banking official balance sheets. Its all part of the same unravelling collapse of 2008 world financialised capitalism, as the hidden under the carpet status of shadow banks now gets exposed as the edges of the cover up blanket start to thread like over-used linen. As we all know in London 2009 meeting Gordon Brown preached of becoming the virtuous game keeper of G20 gathering of impotent world leaders; all the while Brown, the poacher, allowed CIty to ramp up further the crazy financial ponzi; trying to recover lost virginity and deflowered maiden head from bunga-bunga capitalism binges all through 1990 to 2008! Cameron is on same page and Merkozy have been lost in transalation from day ONE? back in early 2009, looking the other way or not knowing financial banking shit from shine hole, which is of course worse as judgement. As Talleyrand is supposed to have said : That was a Crime, but this is worse its a Political Fault!
You can punish crimes but political faults take you over the cliff...as nation or civilization...And now three more years have passed and not only nothing done, worse, the fault has deepened.
"As thou shalt sow so thou shalt reap." Let us all now weep. As the "reaping" is getting deeper and deeper into safe, clean money havens...
yeah, karma is a bitch
How about that USD M3...oh wait the Fed felt that was not important info.
<OT>Is oil becoming a massive short?
http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=pet&s=a103600001&f=m
http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=pet&s=wrpupus2&f=4
http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=KD0VAANUS1&f=A
Euro Credit Crunch - Bitchez.
Shopping Mall REITS hittng world record highs today.
Huge 3-year run, perhaps the greatest ever in history.
http://bigcharts.marketwatch.com/kaavio.Webhost/charts/big.chart?nosetti...
STFU with your "world records." You sound like the biggest douche.
Honestly, we have paper money because we can print it. Gold is for savings. They should just shoot the bazooka and get it over with. No one in the US has any money anyway. Who cares if it loses 90% of its value. Pretending paper has some intrinsic value and manipulating markets to enforce that charade have been the death of America. Fix the banking rules so it can't happen again. Then just shoot the GD bazooka.
Yum Brands at lifetime highs.
http://bigcharts.marketwatch.com/kaavio.Webhost/charts/big.chart?nosetti...
Restaurant stocks outperforming again.
Where is the recession?
Food stamps.
Send the charts to Bernank and tell him that all is well, and nothing to be worried about.
X, ANR, BAC, every international index. Copper prices.
Need I continue?
your witness akak..........
It's certainly not in DC. Take a stroll along anytown US and you'll see the depression all around you.
Sell high - buy low.
Utility stocks are screaming higher again today.
Same with pipeline stocks, MLP's, etc.
Thanks to near zero interest rates.....
"Animal Spirits" in action again.
Your mom is in action again.
Negative real interest incourage capital expenditure and depress employment due to the relative ease of borrowing for capital compared to payroll. Unfortunatly, it eventually leads to stagnation, the macro result. Investing in capital intensive industries at this point is risky because of the late stage, but may pay off if you exit in time.
I play the macro, much less work and stress, much less risk.
Buy PMs.
yeah robo, you're right. only 300 points off the all time high in the /es. i've lost about 400k this year fighting the "animal spirits".
i think that this economic malaise could go on forever, but i'm not sure the corporation i own will be a part of it. business has been down for 3 years and seems to get worse. employee health care cost is exploding and no one seems to know how the new health care laws will affect small business, or how best to position for them. my employees have not had raises in 3 years yet i still have them all, although the smart move would have been to lay off many of them.
i am tired of trying to do the right thing. i think i may sell my insurance offices and lay on the beach and sail for the rest of my born days.
no one seems to know how the new health care laws will affect small business
I think I can make a guess. Health care costs have been going up around 10% a year since the early 1990's. The so-called health care reform bill does nothing to reduce costs but probably increases them due to the various mandates. I think small business can expect their health care costs to continue to increase by at least 10% a year until the system breaks down.
Anyone with a clear head knows that healthcare costs \have gone up BECAUSE of Gov't. Now we expect a Gov't run program to make it cheaper? Sounds insane to me.
The house of cards falls one by one.
The CRB Index is still collapsing.
Funny how many "hard asset" funds are getting Amaranthed this month.
And that ends up providing a huge "tax cut" for the consumer as basic necessities are getting cheaper and cheaper by the day.
Ergo, XRT only about $3 off lifetime highs during the worst economy in decades.
http://bigcharts.marketwatch.com/kaavio.Webhost/charts/big.chart?nosetti...
Dude, if I knew this was the bottom, I would be buying silver and gold. And I don't mean that because I would make a profit but that they are going lower. My finger is on the trigger. Monex rep at the ready. Just waiting to make a guess on how far down it is going. I can't wait to have that silver in my safe in my house with no counter party risk.
Why not let the euro reach parity with the dollar? It will make it more easy to convert to the new currency!
http://www.ronpaul.com/2011-12-29/ron-pauls-speech-at-the-veterans-rally-in-des-moines-iowa/
ron paul's speech last night. best damn speech i have ever heard i think from a elected official.....in my lifetime...........except maybe jfk
ron paul said last night as he has said many times. we should not fight a war unless we declare war through a congressional action etc . this is not constitutional in and of itself. the only time we should have war is when our country is physically attacked ........that is the only time. now one can construe that the term "our country" can be extended to include our ships vis a vis the laws of admiralty and the international laws of the seas........but that is about it. to wit, the actions taken by jackson with the barbary pirates etc...........which i think were a tad overdone in and of themselves.....our soldiers should never have set foot on african soil. this set a very dangerous precedent......this action created the silly notion of us needing a marine corps etc..........and the military industrial complex was born..........remember, problem, reaction, and solution....and the our enemies were there all along as they are now.......inside of our country then and now......
......
Ok..I watched it..In a word: WOW..(and no teleprompters..!)
Tnx for the link.. Folks, there is a chance..Seize the opportunity..!!
God Bless Ron Paul..!!
And pray for his safety..!!
I want to take MillionDollarBonus behind a middle school and make him pregnant.
Money, money, everywhere...billions, trillions, quadrillions and zillions printed out of thin air...and yet very few...certainly not me or you....can get our fair share...
".......is truly humiliating from Trichet as none of the money he injected into the banks has made it to the broader public ...”
Not so! The Jewish CEO's of the banks made millions in bonuses off this fraud on the taxpayers. No different than in this country. And trust me, Trichet doesn’t understand what the word humiliation means and doesn’t care enough about people that it would matter if he did know.
@MillionDollarBonus
There comes a moment in time when the only solution is a massive write off of bad debts.
We are at exactly that point in time. A massive write off of bad debts is now inevitable.
I go on record with the forecast of a severe world depression before 2012 is out. We have no other options left at this point in time. The actions of the Central Banks will not and cannot help.
World war before jubilee is not my preference but my prediction.
The bankers are holding the world hostage - AGAIN. The banker's wealth has been built by the financing of wars - on both sides. The massive Rothschild wealth is a wealth of war loans. They are the Eunuch advisors whispering into the ruler's ears that a war will bring great profits and more power.
Europe and the US are under the death grip of bankers. The rulers know this and they will most likely play along as they always have. There was one ruler who tried to cheat his nation out of the death grip. It didn't work.
This is a good article.
Thanks for posting on the M3 decline as opposed to the "parabolic growth" of the ECB balance sheet. Between those two one can possibly observe a moderate development of a ECB FIAT system which may actually make more sense than the actions of FED, BoE or BoJ.
I happen to view a fall of M3 Money as a POSITIVE thing !
Theres far to much money in the system already .. its GOOOOOD that this paper money system
contracts. Then the moneybase hopefully can catch up with the underlying volume of REAL ASSETS
one day !
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