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October 11, 2011 / 74

EC No Smarter Than US Congress!!!

According to an article in the Guardian today, European commission president José Manuel Barroso,  thinks that “Further integration is the answer to contagion”. Of course, he seems to be unaware that it was the integration that formed the EU which led to the printing up of the new fiat currency, the Euro, that eventually led to the financial difficulties in Europe in the first place.

I don’t believe there has ever in history been a fiat currency that didn’t tempt the currency’s government to spend more than they had, and to cause the fiat currency to collapse. So whether the EU integrates further or not, the end game will be the same – a complete collapse of the Euro.

President Barroso also says he has a plan to “recapitalize the banks”. But to what purpose? To kick the can down the road for a future government to take the blame for the current fiscal disaster? Remember, US FED chairman Bernanke “recapitalized” the banks in the US and didn’t that go well – with banks still unable to loan and leading to increased unemployment, high inflation and reinforced stagnation of the economy and a weaker dollar as Bernanke attempts to monetize the US debt.

A continuing source of amusement for me these days is that these central bankers and national “leaders” say stupid things like how they plan to “recapitalize” banks. And the question that immediately rises to the top of my mind is, “recapitalize with WHAT? YOU’RE BROKE!!!”

But in a world where everyone is trying to inflate their debt away at the same time, it seems that all currencies rise to insolvency together. Perhaps this is the “integration” that Barroso seeks? We’ll all go broke together and maybe no one will notice.

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