The economic crisis around the world is worsening. The US economy shows no signs of recovering. With the fiscal cliff of tax increases coming in January, why should anyone expect it to. The imposition of a tax increase is not when the deleterious effects occur. They occur with the expectation of the increase. People alter the behavior in advance of the event. That is what is called “preparation.”
The European crisis is not being solved. Nor can it be solved. It is too far gone. It has the inconvenience of a stupid union which cannot reconcile the good of the whole against the sovereign interests of the parts. Partly as a result of this Frankenstein of a creation, it is in worse shape than it could have gotten into without the union. But now it is too late to solve the financial problems by addressing the political ones. Don’t tell that to the G-20 who like to pretend they are solving problems.
Gary North has a rather lengthy column regarding Europe and the New World Order. In his view, the so-called leaders of the NWO are panicked as they see their grand plan blowing up. Mr. North sees no solution to the European mess other than the possibility of perhaps extending the charade for a while longer. It is his view that inflation is inevitable:
… the European Central Bank is going to inflate, inflate, and inflate. The head of the bank can make all the comments he wants about the responsibility of politicians to intervene to keep the structure going, but he is ultimately the bagman of the system. He is the guy who has control over the printing press. He is the only person, along with his colleagues, who is in a position to keep the system afloat.
There is no firewall. There is only the ability of the European Central Bank to create money, and to do so by lending it to commercial banks or directly to governments. It does not matter what kind of rules and regulations are in place that were supposed to prohibit this back in 1999.
In the midst of a conflagration, nobody in power is going to point a finger at the European Central Bank when the bank intervenes to bail out a government that is about to default on its debt. The reason is clear, or at least is clear to me: no politician wants to be responsible for coming up with the money to bail out the largest banks in his country, all of which will be threatened with insolvency because of the default of Greece and Spain, because that will produce a domino effect by all of the PIIGS governments.
The nature of parasites, er politicians, is the same the world over. That is why I believe that it is inevitable that our ending is preceded by inflation. In the case of the US, the Fed will be easier to roll than the EU central bank.