If that's the case they will just push another trillion through the system, its no problem for them to keep adding trillions of dollars to prop up the entire global market. Free money for everyone.
I hope so... Unless you're right, of course... You're not the only one. You don't have to agree with my views. My conclusion regarding the expected path of the drachma/EUR exchange rate seems obvious, because, as I have mentioned already: a) it's based on fundamental macroeconomic principles; b) similar events have occurred before. If you want to talk about Greece and not about the Fed, why do you keep mentioning the Fed, its various (ex)Chairmen and Thomas Jefferson? My point to you is that the Greek situation is all about basic macroeconomics. Central Banks and central bankers, even if they're 6ft+ tall and are called Paul Volcker, are not magical entities that can twist the fabric of macroeconomic reality at will. No, I don't see any connection. In fact, you've convinced me that you're marvelously confused. What does inflation have to do with anything? When did "bets on inflation" ever come into this? As to Volcker, see above. I don't know anything about IMF loans to Bono, but I just don't understand what this has to do with Greece and sovereign debt. What is your point here? Again, what does this have to do with anything? We're talking about Greece and you're comparing Volcker to Bernanke? Apart from the obvious issues with the way you're making the comparison, what does this have to do with Greece? Was it the Martians? Britney Spears? In all honesty, I always thought it was Soros... But yet again, even if it were the Martians, what does this have to do with anything? I brought up Soros and the ERM to illustrate an obvious point; namely that raising rates doesn't necessarily imply a strengthening of the ccy, while causing pain to the domestic economy.
NAW ) 05/12 08:57AM AUSTRIAN MINT SAYS SOLD 243,500 OZ GOLD IN COINS AND BARS IN LAST 2 WEEKS, MORE THAN IN ENTIRE Q1 ( NAW ) 05/12 08:58AM AUSTRIAN MINT SAYS GOLD ORDERS COMING ENTIRELY FROM EUROPE IN LAST FEW WEEKS, SIGNS OF "PANIC BUYS" You pay an 8% premium on physical gold here! That's insane and I'm sure it's going to go much higher.
If the world leaders and bankers think they can save the world economy by printing money, they are wrong. They will fail ultimately. They are just creating bubble which will burst ultimately.
Rumor: Germany will leave the Eurozone & reintroduce German Marks A web page of precious metals prices provider Kitco.com has sparked rumors that Germany will leave the Eurozone and reintroduce German Marks, sending gold to a new record of $1,244 and silver to a multi-year high of $19.64. It is this half-ready page shown below that has created excitement as it lists precious metals in Deutschmark units. http://www.zerohedge.com/article/gu...lets-rumors-about-germany-abandoning-euro-fly
How would lend more money to welfare state solve the problem??? increase debt and more debt? I don't get this bailing out of welfare countries that can or refuse to cut deficits. Countries are not companies,,it can't go bankrupt and wipe out debt. lenders will be more reluctant to lend or want more interest if the euro loses value from debasing if the debt repaid in euro.
Countries can, and frequently do, go bankrupt. But I agree with you, throwing good money after bad money (which is essentially what the Bailout does) is a level of stupid that only politicians can succumb to.
Everybody is saying that printing money and giving it to bankrupt companies, bankrupt banks, bankrupt countries will not help. They will fail ultimately. But the governments keep printing money and giving it to bankrupt companies, bankrupt banks, bankrupt countries. Does this mean the people have no control over the governments?. The governments can do whatever they want?. The governments are behaving like Gods.