Real Effect: Spend a Trillion, Nothing Changes

Tuesday, May 11, 2010

Spend a Trillion, Nothing Changes

Karl Denninger quickly and accurately describes the problem -

The "currency speculators" - cough - BANKS that were shorting the hell out of the Euro.

Let's see if I can figure out what's happened here.

Banks shorted the Euro, (correctly) surmising that Greece, Portugal, Spain and others can't possibly cover their debts.

The ECB freaks out as the Euro heads toward PAR and calls "emergency meetings" (forgetting, I might add, that the Euro traded under PAR not that long ago.)

The ECB and Eurozone decides to "defend" the Euro with €1t in "defensive measures", including buying bonds of bankrupt sovereigns (gee, that's nice - monetization by another name.) Since the ECB and EuroZone cognescenti is of course connected to the large banks in Europe (including France, where Sarkozy is located) these banks know to back off on Friday (notice the nice little uptick?) to lock in their bonuses from these insanely-profitable trades against their own currency.

The very same banks, including the ones in Sarkozy's back yard, see the very nice spike and short the Euro even harder, (correctly) surmising that they have successfully stuck the gun up the nose of the ECB!

Rinse and repeat until you have all the money.

The Real Effect
Whaaat? Throwing a trillion at the bankers didn't fix it? Who would have guessed?

Gold and silver are breaking out above their highs, the Euro is still falling and the elite have 1 trillion more. Isn't this THE definition of insanity?

Look for massive volatility as the "market" convinces the "government" that they need MORE money. Meanwhile, all the money that is being thrown at "the problem" isn't actually doing or going towards what our "elected" representatives tell us it is. The correct term for all of this is FRAUD.

What the banks are selling their customers is fraud, what the representatives are doing with the criminal cases is fraud, the reasons for taking your money are fraudulent, and when everything is predicated upon fraud is it any wonder their is no confidence in the system?

Look for the situation to continue.... What? It's going on already!?!

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