Monday, November 21, 2011
"So the IMF move is just a backdoor bailout"
"So the IMF move is just a backdoor bailout
that the Powers That Be
are hoping the public won’t notice.
None of the IMF backers were willing to commit money
at the G20 meeting last month…
so why are they willing to do so via the IMF now?
...The markets have lost faith in various EU countries
and so are no longer willing to lend to them
at current rates.
...various EU sovereign bnods are tanking,
which in turn pushes interest rates higher,
which in turn makes it more difficult
for these countries to service their debts.
You cannot solve this problem by bailing out Europe.
You cannot make an insolvent nation solvent
by lending it more money.
It just doesn’t work.
Greece has proved that.
And Greece is ultimately a minor player in this mess
(GDP of $304 billion vs. Italy’ GDP of $2.05 TRILLION).
So now that Italy and Spain are imploding,
somehow the IMF is going to save the day?
...The problems Europe faces are based on simple math.
The problems are that there’s too much debt."