The fake euro rescue

Tits in the wringer

“ Anyone who has grown fond of the euro crisis has little to worry about: it’ll be around a while yet. Even the decisions of the latest EU summit won’t see it off. On one hand, those who blame the politicians for the crisis are right. On the other, they’re sparing themselves the insight that the politicians are grappling with a gigantic real-world contradiction, which springs out of the logic of the system itself and can’t be so easily shoved away. The starting point is the finding that the eurozone states are carrying too much debt. This is the verdict passed down by the states’ creditors, the financial markets, in line with their unvarying criteria on investments: safety and return. The states have borrowed too much, but you can flip that around and say that the financial markets have loaned out too much. This isn’t to fling  ..... [The fake euro rescue cont.] ” I cannot be surpised, and I cannot fail to see how this  also doesn't apply to the USofA. “ Such situations are common in capitalism. Industry also regularly turns out goods it can’t sell. The solution to this problem remains the same: devaluation, which leads to goods and factories being sold off or destroyed. In the current crisis, though, it’s precisely this devaluation that must be avoided, for a large-scale write-down of financial capital would – the fear is – tip states and banks into the abyss. "Contagion" is the name of the threat that will be hovering over us for as long as the financial markets fear it. ” After watching Milton Friedam's epiphanic PBS series Free to Choose lo these many years ago,  I walked away with this truth Capitalism, e.g. Free Market economies,  ebb and flow.  When left alone they will find equilibrium.  The problem occurs when politicians, convinced by their own obvious brilliance in all matters, decide to help out, and get tits caught in the wringer.    Which of course is where we're at.