Skip to comments.Europe's money contracts again
Posted on 05/30/2012 3:46:30 PM PDT by bruinbirdman
Very quickly, today's ECB data shows that Euroland's money supply is contracting again.
M3 fell by 51bn in April.
M1 fell by 55bn.
Private credit fell 55bn.
I don't yet have the country breakdown. My guess is that the Club Med implosion is grim.
The chart is based on the annual rate. It has not yet picked up the month-on-month contraction.
Clearly the sugar rush from the ECB's 3-year credit blitz has worn off, leaving behind some very toxic effects.
Those banks in Italy and Spain that used the money to play the Sarkozy redemption trade by purchasing sovereign debt some with ten times leverage are in serious trouble.
Today's spike in Italian yields shows that they are running out of LTRO money to keep the game. Spanish five-year debt is over 6pc. Muy feo.
Quite why anybody thought that a 1 trillion liquidity blitz
(Excerpt) Read more at blogs.telegraph.co.uk ...
We’ll need an oxygen mask before this thing is over. Remind me, where exactly is socialism succeeding? Why are Americans still calling for more socialism? Is more poison really going to cure the patient?
It is especially ironic to me as just last week my family met two Danish lasses on their “gap year”. They disparaged America while regaling us with stories of how in Denmark their education is completely free. They emphasized “completely free” several times.
Being familiar with socialism and its unseen costs, I asked them how they afforded their nine month vacation around the world. They said that in Denmark the taxes are so high you cannot earn enough money, so they went to Finland where taxes are nearly halved over Denmark. They complained bitterly about the high taxes in their home country.
I said nothing as my children were there and I wanted to inoculate them against socialism. After the young ladies departed my kids reported the idiocy of their beliefs. I am relieved and delighted as you can well imagine.
Very true. Especially in contest with the above question, "Why . . . more socialism?"
Aside from the fact that they make their living trying to promote it, Socialists hate private property. All property should belong to the state.
Socialists hate capitalism, especially profit. The state should allocate all labor and resources.
After the Russian Revolution the international communists pondered the reasons the revolution failed to spread worldwide. Their conclusion was that capitalism was ingrained in human nature, culture. They have set about for generations to alter the capitalist culture.
As Hillary Clinton (speaking for most commies) said, "We'll just have to change human nature."
It is much easier to control a few giant corporations than millions of little businessmen.
The term for that way of thinking is; “to git some Obama money”.
You just wrote a great argument for free enterprise. Thank you. And as some our bosses of yesterday said, competition is healthy for business.
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