After the supposed euro rescue is before the next financial crisis. Against the euro crisis the European States loosely make 750 billion euros – the crisis is now averted? A highly dramatic weekend of crisis meetings in Brussels, Berlin and other European capitals is behind us. Together with the International Monetary Fund (IMF), the EU wants to spend up to 750 billion euros as a “Rescue package” for the ailing single currency, the euro. In our rich in rescue packages in astronomical denominations, it is indicative that the sum is certainly no reason to great confusion. So once again to the memory: we are talking about 750.000.000.000 single euro, but eventually be claimed against the contrary protestations of many involved actors just. Or even a little differently: 750,000 million euro. -Put your hands up – he that believeth that you will ever see these borrowed values? What that means is clear. First someone – tax-paying citizens – to this sum must be straight, and Secondly, a financial bet that is a sure thing at the moment: there is no, there must be in the next few years a significant inflation in the economically strong countries on Earth.
Why? Because inflation is the only politically enforceable means to get huge government debt, which are aggregated at the moment on this side, and across the Atlantic, at some point in the handle. A little bildlicher: Inflation is the only real possible valve on the overindebtedness of the world via the overpressure can be drained. Thus, the debt problem was also solved, not least heard by the Nobel Prize winning economist Paul Krugman. There is after all independent central banks, which in time can increase the key interest rates, before the advent of dangerously high inflation rates and so get the risk of inflation in the handle. Behind it stands the idea that taxpayers would be burdened by the rising interest rate charged to the more indebted States unduly without inflation.
Still, the assumption is based on the political independence of central banks. Because interest rate hike means throttling the liquidity available in the economic cycle. The normal consequences are decreasing growth rates with all its consequences, of which growing unemployment in the industrialized countries is only one. But same taxpayers who are protected by “controlled” inflation should, will have felt same inflation at any store cash register; not to mention saving (pensions, insurance schemes, private savings-pigs and stockings, etc.). And central banks at the moment are as independent, could be seen at the weekend, as the European Central Bank, under pressure from the EU Heads of state their position to buy a worthless southern European government bonds, held by two days. So or so, incredibly high debt will take their toll. Commodity prices and labor costs in emerging countries tighten already strong, and is the next real estate bust in the United States with depreciation volumes of 300-400 billion dollars expected for the middle of the year. The day will come, because the rants – partly legitimate – about the machinations of speculators in the neck of the politicians are stuck. There are many indications that it is only a matter of months.