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LWW
05-09-2010, 08:33 AM
When the problems of debased currency come home to roost ... why do the big state folks always assume the answer is to debase the currency even further?

This is really no different than people who can't pay their credit cards applying for another credit card so they can bring their arrearages up to date ... and start spending again.

<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">European Union finance ministers pledged to stop a sovereign debt crisis from shattering confidence in the euro as they held an emergency summit to hammer out a lending mechanism for deficit-stricken nations.

Jolted into action by last week’s slide in the currency to a 14-month low and soaring bond yields in Portugal and Spain, leaders of the 16 euro nations agreed on the backstop yesterday and told ministers to get it ready before Asian markets open.

“We are going to defend the euro,” Spanish Economy Minister Elena Salgado told reporters as she arrived to chair today’s Brussels meeting. “We think we have a duty for more stability for our currency. We will do whatever is necessary.”

Europe’s failure to contain Greece’s fiscal crisis triggered a 4.3 percent drop in the euro last week, the biggest weekly decline since the aftermath of Lehman Brothers Holdings Inc.’s collapse. It prompted the U.S. and Asia to urge broader steps to prevent a debt crisis from pitching the world back into a recession.

“In the night, when the markets are opening, we cannot afford a disappointment,” said Finance Minister Anders Borg of Sweden, one of 11 EU nations not in the euro. “We now see herd behavior in the markets that are really pack behavior, wolfpack behavior.”

European officials declined to disclose the size of the stabilization fund, to be made up of money borrowed by the EU’s central authorities with guarantees by national governments. The meeting started just after 3 p.m. and a press conference was scheduled for 6 p.m. Some officials said talks could last longer. </div></div>

&gt;&gt;&gt;THE EURO SOCIAL DEMOCRACY MODEL IS SELF DESTRUCTING IN FRONT OF US&lt;&lt;&lt; (http://preview.bloomberg.com/news/2010-05-08/eu-finance-chiefs-race-to-ready-emergency-fund-before-asian-markets-open.html)

LWW

hondo
05-27-2010, 08:46 PM
http://www.youtube.com/watch?v=FVo_Y2wZ0Tw