If you can believe it, even though the Fed has provided financial flows and assisting speculative flows so Wall Street, banking and hedge funds can glean mega-profits, it still has not provided enough liquidity for additional GDP growth. The small and medium sized businesses have been shut out. The latter participants do not play those games, it is the propriety trading desks, hedge funds and the remainder of the leveraged speculating community that takes advantage of the excess liquidity and the Bernanke put of keeping bonds and stocks up artificially. The Fed and the others are sustaining this process. There are negatives for the Fed and their friends, higher commodity and gold and silver prices. The Fed and banks temporarily took care of that and haven’t quite finished their latest short-term foray in that sector. There are still fears as well regarding Greek debt fears and their CDS, Credit Default Swaps, and those of other euro zone members. They could still blow up in everyone’s faces in a partial if not total default, which is very likely. Banks are on the wrong side of this trade as well as the bond trade, not only with Greece, but with five other nations as well.
In the final analysis papering over the problem never works. The problems also reemerge with new additional problems. The combination of excessive speculation and liquidity and too big to fail is going to end badly, as it always has. De-leveraging will eventually rear its ugly head.
We have seen the extensive damage, as we predicted, that has been caused by one interest rate fits all, which led to a major misallocation of funds and malinvestment. Due to such low interest rates massive debt was accumulated. The EU’s answer is to usurp sovereignty and turn the entire mess over to technocrats, who will most certainly make matters worse.
Political currencies like the euro do not work. It is an unnatural cultural instrument designed to bring people of differing cultures together as one. The order envisioned by European elitists is total amalgamation of all nations at every level. What the professionals not included with the elitists don’t understand is that these Illuminists want world government, at any cost.
