Sunday, April 26, 2020

Everything is awesome, right?



EU agrees on €500B of economic aid but no ‘corona bonds’

Either recourse would fail due to the Euro's structure as a multi-national currency.
Sovereign debts were never collateralized into one debt sharing structure, leaving each country's currency intact, only to rise and fall against the value of the Euro fiat.

Having a handy pandemic has caused the German state to capitulate. But the Euro Bond will likely be no more effective than Quantitative Easing was against the ruin European banks held as collateral in the form of those Mortgage Backed Securities which so woefully destroyed the world economy once already.

The outcome was to destroy the European Bond market.

The United States had it's
Troubled Asset Relief Program (TARP) to purchase those toxic assets whereas the European Union was sold as a market alliance, not a central controlled super state as its unelected commissioners so vehemently wish for. 


The now obsolete Maastricht treaty aimed to avoid this scenario by forbidding bailouts. Of course, that doesn't negate bank's "bailing in", using depositor accounts, or a wholesale negation of cash to the advantage of state owned cybercurrencies, as promoted by the IMF's LeGarde, now head of the European Central Bank (ECB)!


If the ECB already holds over 40% of EU sovereign debt currently, who will be the buyer of last resort for the proposed "Eurobond"?

Already you see restrictions on ATM withdrawals as well as a ban on purchasing gold by individuals.  The demand for US dollars has hit the roof besides.

Despite the monetary concerns & denouncement of  anything termed a "CoronaBond", why is it the publisher has chosen to decorate the article with facetious Corona charts and the furtherance of disproven doom porn modeling?

Enjoy the show. We will welcome your fleeing capital and investment here in the US - at least for a time. As it stands, in the short term, the US will be the last man standing.

No comments: