Tuesday, May 11, 2010

Bait and Switch

I will not try to explain the economic maneuver behind the EU financial package, but the Reader can attempt understanding with the links here. It is rather standard fare, based on the old Concept of ‘We will spend it, and it might help!’ No one talks about it much, like all these things, because no one can define How it could possibly help. It is like unto betting on rolling Boxcars when playing Craps; given odds, you can sometimes win a bit. Here, if Creditors believe the hogwash, it might allow these Countries to last through another year. Will the Euro withstand the myth that everything is uniform in the land of the EU?–Even God rested on the Seventh Day!.

The next question to ask is whether California can join the EU? It might be time to switch the State debt to euros! California, Greece, and Portugal seem about on a par in refusal of new taxes, with wistful feelings about cutting expenditures. Spain might be able to get a Credit Card, but with a set upper limit; the above nations need a TARP of their own. Some dismal people like myself cannot see past their Nose, and believe this will only let Creditors get their money out without loss. I do not feel Good about writing all this, but I doubt if Anyone does!

The United States helped the EU in one way at least; they proved beyond doubt that invasions were too expensive to undertake anymore, especially when you have to transport Troops and Supplies halfway around the world. It is fact, though, that everyone is searching for some form of stimulus, and Spain could invade Portugal fairly cheaply; forget the suggestion of Germany invading Greece, the Greeks still remember the last time, and might get even angrier than the Taliban. There is the Thought that We could threaten Switzerland with invasion by France and Italy if Swiss banks did not issue a similar loan guarantee for the euro as has the IMF. There is the traditional standby of everyone borrowing from Great Britain, with their later borrowing from the United States; but then the U.S. Treasury would get mad! California and Greece could swap derivatives I guess, if the Chinese will front the Cash. lgl

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