Wizard of Banking

imagesThere is nothing new under the sun. It will rise from the east, and sets in the west. There is nothing new at all. So should bank closures in Greece be such headline news? Just not too long ago, Cyprus was a dress rehearsal. Anyone watching the banking system knows that. Now that rehearsal phase 1 has passed with flying colours, we are in phase 2. It’s Greece turn. Greece may be a little different from Cyprus. Greece will hurt the EU, while Cyprus hurts the Russians. There is always the possibility of a rabbit being pulled out of the Troika’s hat. Only it won’t be white this time. It will be pink. Greece is dress rehearsal 2. The finale is making its debut soon.

It is not just Greece that is bankrupt. Greece is bankrupt because Greece cannot print free money. The EU’s major member countries are also bankrupt. But Draghi has the power to make money. He is a financial charlatan. He who can print money cannot go bankrupt. This is what Draghi, as President of the European Central Bank said in his 2012 speech at the Global Investment Conference in London,

But there is another message I want to tell you.

Within our mandate, the ECB is ready to do whatever it takes to preserve the euro. And believe me, it will be enough.

Did anyone hear him? The same goes for bankrupt USA, the world’s largest economy. Bernanke was the world’s foremost and top financial wizard, calling money falling out of the sky at his whims and fancies. His protegé Yellen, is doing the same. Is there anything new under the sun? What about the rest of the world? It is the SAME.

For those still not converted by the wizards of money, look at Puerto Rico today. It is a poor economy by world standards. Washington Post reports the red hot news, “The governor of Puerto Rico has decided that the island cannot pay back more than $70 billion in debt, setting up an unprecedented financial crisis that could rock the municipal bond market and lead to higher borrowing costs for governments across the United States.”

The strange thing about finance and banking is that the bankrupt lends the bankrupt. So where is the money? Who knows? The Chinese might be smarter. It is speculated that China now may have a colossal 30,000 tons of gold. The rest of the world can go and burn hell fiat paper. The Chinese still has the gold after the fire dies down.


Ecclesiastes 6:1
There is an evil which I have seen under the sun, and it is common among men:


Advertisements

, , , , , , , , ,