Monday, February 11, 2019

Supercrash: "The Euro is organized madness" - a German economist explains "Target 2"

Europe's sword of Damocles: a trillion-Euro central bank debt that doesn't pay interest and is owed by... nobody. European capital preparing to fly to Germany because of fears of a major unfixable financial crisis. Germany possibly exiting the EU...

Slides from the above:

About Dr Oliver Hartwich:

Martin Armstrong chimes in:

"The crisis brewing here is monumental and it will tear the European Union apart at the seams. There is this crisis that because the Euro was NEVER designed properly to begin with, Brussels is trying to enforce its demands upon every member state to maintain austerity regardless of the consequences domestically in each member state.  When Southern European states joined the Euro, they had to convert all past debts from their local currency to the Euro. What happened was not only their national debts DOUBLED in real terms, but ALL PRIVATE debts also DOUBLED. Suddenly, banks that had lent Italian lira were now demanding to be paid in Euro which doubled in real value. Nonperforming loans skyrocketed and every politician blamed the bankers for their own misguided creation of the Euro."


Sackerson said...

JD comments:

I saw your post about Germany and the Eurodebt. To the surprise of nobody the Euro is finally going to collapse. It was in 1999, I think, I was doing some work in Barcelona and a Frenchman on the project was waving a ten euro note about and he said to me "Zees will soon be your currency!" So I laughed and said "I like your sense of humour!"

Aren't you glad Gordon Brown and Ed Balls didn't sign us up to the Euro. For all their faults the pair of them managed to get something right.

What will happen now? A debt jubilee? I cannot see any other solution, not just for eurodebt but for all of the outstanding debt in the world. i keep seeing ridiculous figures of 300 times asset value or GDP or variations on those or other figures. Does anyone even know who owes how much to whom?

From my previous posts on work is the quote from Brian Keeble's book This 'system' possessing no vision of an end other than its own perpetuation, must eventually bring about its own destruction."

That referred to the system of mass production but I think it applies equally to currencies and debts, especially when you think of artificial stimuli such as Quantitative Easing - money for nothing!

Pour yourself a good whisky and sit back and enjoy the show!

Paddington said...

At what point will people realize that our current view of money is fairy dust?

Money is not wealth. It is possible, with modern banking, to create the former out of thin air.

James Higham said...

Popcorn at the ready.