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Friday, August 26, 2011

Euro is Doomed...

What happened?

Euro is Doomed…

When will they ever learn?

Two outcomes are certain in the next few months. Some people are going to make a lot of money. Most people are going to lose a heck of a lot more. You can take it to the Bank.

Face it the collapse of the Euro is inevitable as long as policy makers continue to hang onto old theories dating back to the 17th century. Abstractions. Abstractions. And more abstractions that have nothing whatsoever to do with underlying realities. Austerity programs in Greece, Spain, Italy, Ireland and the even the UK will lead to far less economic activity and even fewer jobs. Then less government revenues, more debt, more austerity. Welcome to the death march to a depression that will last for years to come.

Why are the economists and policymakers failing? The problem is they have been failing for years, by propping up a banking system where very little stimulus filtered back down to the real economy. The stimulus was used not to create concrete products, businesses and jobs, but to continue to inflate the financial assets of the select, elite and self-centred Banksters. The man on the street knows and senses, that a service-based financial economy produces nothing but hot air. And more hot air will not provide the job needed to feed his family.

So unless policymakers begin to refocus the stimulus toward the real economy and let these big banks with hot air assets fail, (they will ultimately anyway) the drummers’ march to depression grows nearer. The pace brisker.  And, the Euro is doomed…

T. A. McNeil,

First Financial Insights Inc.,
August 27, 2011
@FirstFinInsight



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