The Failure of Socialism - Countless billions of Euros are used to prop up the failed Marxist cradle-to-grave Welfare State
- Weeee . . . . "free" freshly printed Euro Monopoly Money.
- European Socialists are doing everything possible to protect Big Government spending programs with Ponzi schemes of phony printing press money and "debt sharing."
- And the Democrat Party wants the US to be more like Europe.
Two words to remember - Guns. Gold.
Will the economy of the world meltdown? The entire economy of the U.S. and Europe is floating on a sea of international "debt sharing" and pretend printing press money. It is a giant Socialist Ponzi Scheme, and some point someone gets left holding trillions in worthless debt.
Simply, there is not enough money in the world to cover Big Government Socialist spending.
Now in another round of Ponzi debt games two European rescue funds are to be used to buy the debts of the troubled economies, the cost of which have reached record highs in recent weeks.
Under the proposed deal, two European rescue funds will pour in billions:
- £400 billion (€500 billion) European Stability Mechanism (ESM)
- £200 billion (€250 billion) European Financial Stability Facility (EFSF)
They will buy bonds issued by European countries in one giant Ponzi scheme to prop up the European Socialist Welfare State.
The European Central Bank previously bought about £170 billion (€210 billion) of bonds in this way but stopped last year.
UK Independence Party leader Nigel Farage on the insanity in Europe.
Farage for US President!
Italy risks being pulled back to the heart of the euro zone debt crisis as the fallout from a Spanish bank bailout makes market access more expensive even though Italian economic fundamentals are seen as stronger than Spain's.
The correlation between moves in Italian and Spanish bonds has risen sharply since March, showing the increased risk attached to holding Spanish debt is feeding through to Italy.
Many in markets believe rising borrowing costs will push Spain into a sovereign bailout, damaging investor confidence in lower-rated euro zone debt such as Italy's and depleting the regional funds available if Rome needed assistance.
Spain is the euro zone's fourth largest economy and Italy the third. If Spain were to need a sovereign bailout, which many analysts predict, it would exhaust the region's rescue funds.
Contagion risk could make it increasingly costly for Italy, seen as the country most likely to fall under market scrutiny after Spain, to raise funds in debt markets in the absence of a crisis solution or further European Central Bank bond purchases.
(UK Telegraph) (Reuters)