t. man hatter
We recently noted that we all know where easy money goes.
There's an old warning about if you're playing poker and after a certain time you don't know who the pasty is, you're it.
Just substitute easy money for poker and you'll get the drift. Here are some recent comments about Europe and it's economic plight.
--Japanification of Europe
--ECB needs to act now
--Germany stalls
--Latest inflation figures call for ultimate bazooka from ECB
--Can't wait to start QE
The ultimate big bazooka is oiling up the printing presses and warming up the helicopters to drop this stuff throughout Euroland. Supposedly, according to EU regulations, asset inflation is verboten as in against the law.
But one need only remember that illegal is only illegal as long as bureaucrats and politicians say it is. In the shifting sands world of these folks concrete doesn't exist. Forget the Rock of Gibraltar or even the Rock of Ages. This is rocky terrain looking for a place to landslide.
QE to the Germans is economic hemlock. They don't want it and most likely won't tolerate it. Nor should they. That big cracking sound you hear in the background just might be the EU coming apart at the periphery if QE gets unleashed.
What many of these people don't get is QE rhymes with Keynesianism and Keynesianism is belly up at the bar. And has been for a long time but someone forgot to turn out the lights as they were leaving.
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