What the Europe Debt Bomb Looks Like

[Book]

http://www.globalresearch.ca/articlePictures/europe%20debt.jpg

[Horn]

Caught you drawing Pentagrams again, Book. ^-^

[jedemdasseine]

A trillion dollar rescue package for Europe, yet bankers can create many trillions of dollars in short positions.

So WTF is the point?

A trillion dollar rescue package for Europe, yet any country that cannot raise enough capital can opt out. The incentive for nations like Italy, Spain, and Portugal: sabotage your country's economy, so you are on the receiving end of the bailout and don't have to pay out the next trance to Greece.

The US is on the hook via Basel II, the IMF, Bretton Woods, and other arrangements. The euro is a derivative of the dollar.

[steveoc]

From Shakespeare's Hamlet, 1602:

LORD POLONIUS:
Neither a borrower nor a lender be;
For loan oft loses both itself and friend,
And borrowing dulls the edge of husbandry.

[jedemdasseine]

Cry havoc and let loose the dogs of war.

There's no longer any incentive for a member country of this bailout to be fiscally and monetarily responsible, so which one is next?

Greece puts limits on cash transactions.

Now Italy has done so.

Does that mean Italy is next?

I don't know.

I would have guessed Spain or Portugal.

[jedemdasseine]

Remember when Sinclair said the euro was going to 2 against the dollar?

Damn.

[Libertarian_Guard]

Book

Nice chart / graph.

I would like to see the same thing showing the debt of U.S. Japan Germany France Britian.

[mamboni]

People, communities, governments and corporations have one thing in common: they always act in their own self-interest. It is a basic survival instinct. It is self-reinforcing. It is the law of nature.

In a social welfare system, a member state is inclined to be on the receiving end of aid and disinclined to be the donor. This is why in social welfare statist systems, productivity and growth decline inexorably while debts, deficits and demands grow continuously. There is no incentive to work because your surplus products and services are redistributed. There is every incentive not to work because you will be provided for regardless of your effort or lack thereof.