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Summary Of The Biggest Bail Out Ever: Even Keynes Is Spinning In His Grave

http://www.zerohedge.com/article/summary-biggest-bail-out-ev...

Europe has now followed the Fed in its all in move to prevent the disintegration of the euro and of Europe. As we expected, the EU was leaking various rumors to gauge market interest, and as speculated earlier, the final cost ended up being just short of one trillion. Here are the key summaries:

EU Crafts $962 billion show of force to halt crisis
Full blown monetization: ECB will buy public and private bonds
Fed reactivates swap lines with Bank of Canada, BOE, ECB, BOJ, and the SNB
In other words, total and unprecedented monetary lunacy, as every cental bank, under the orchestration of the Federal Reserve, will throw money at the problem until it goes away, which it won't. As we have long expected, Bernanke is now willing to sacrifice the dollar at any cost to prevent the euro unwind. This is nothing than a very short-term fix, whose half life will be shorter still than all previous ones.

The race to the currency devaluation bottom is now in its final lap. And gold is the only alternative to the now imminent collapse of the fiat system: the world had a chance to take writedowns on losses, punish those who took risk and failed, and refused to do so. There is now no risk left, but it only means that eventually all the risk will come back and lead all capital markets to zero. The result will be the end of Keynesian economics as we know it. Do not trade in this broken market, do not hold your money in a bank as they are all now one hour away from a terminal bank run - buy and hold real, FASB mark-to-myth independent assets.

continue reading at the link -
http://www.zerohedge.com/article/summary-biggest-bail-out-ev...



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SteveMT's picture

You are right about the "grave blowback"....it's already ....

not working!!!!

Global stocks rally slows sharply on Tuesday
* Asian shares take breather after biggest 1-day rise in a yr
* Euro dips, trims much of gains made on EU's rescue package
* Some doubts about how some euro countries will cut deficits (Repeats to more subscribers)
By Masayuki Kitano

TOKYO, May 11 (Reuters) - A massive relief rally in world stocks on news of a $1 trillion deal to resolve Europe's debt crisis slowed down on Tuesday in Asia on nagging doubts about how Greece and other debt-laden euro zone countries will reduce their budget deficits.

The euro, which had initially surged on the news of the package put together by EU finance ministers, central bankers and the IMF, was slightly weaker on Tuesday and well off its Monday high. [ID:nTOE64907Z]

The European rescue package, together with a pledge from the European Central Bank to buy government bonds, helped ease worries about the risk of contagion from Greece's debt crisis.

http://www.reuters.com/article/idAFSGE64A05420100511?rpc=44

SteveMT's picture

The last act of a tyrannical government is to....

debase the currency.

They just created a 1,000 times $1,000,000,000 in three days out of thin air!

Info bump.

Thank you Steve

They destroyed any chance to rescue world economy - it will have grave BLOWBACK...

sadly this BLOWBACK will hit at the common Joe instead of them bastards.

LL on Twitter: http://twitter.com/LibertyPoet
sometimes LL can suck & sometimes LL rocks!
http://www.dailypaul.com/203008/south-carolina-battle-of-cow...
Love won! Deliverance from Tyranny is on the way! Col. 2:13-15

reedr3v's picture

Scary

times.

Thanks for a bump my friend

agreed - scary times.
People should prepare.

LL on Twitter: http://twitter.com/LibertyPoet
sometimes LL can suck & sometimes LL rocks!
http://www.dailypaul.com/203008/south-carolina-battle-of-cow...
Love won! Deliverance from Tyranny is on the way! Col. 2:13-15