This chart shows the New York Times exposure of the five cross-country euro area unsafe, or because of banks' bought a government bond of the other, and as they risk losing if a Member does default. Member States are notorious PIIGS, and the figures of their receivables and payables have been converted from euro into dollars. The chart would show weakness and irresponsibility of the weak. Actually shows something else: namely, that to risk more are the banks and speculators strong countries, primarily Germany.
The thickness of the arrows is revealing. Those who join PIIGS are relatively thin. But look at the big, thick arrows that express the debt of PIIGS to Germany, France and Britain. Italy, which has a debt of 1.4 trillion dollars, it has 511 to France-which means that the smart French banks bought debt Italians for a fee equal to 20% of French gross domestic product. A wise investment, no doubt about it.
and German banks? They have 184 billion dollars in the belly of the Treasury in Ireland, 238 billion of securities English, 190 of Italians, 45 Greeks and 47 billion shares of debt securities Portuguese.
Without the money, the astute German banks are exposed to more than 700 billion with PIIGS: If Ireland is bankrupt, and if the infection spreads to Portugal - and then irresistibly to Spain and maybe Italy - (why to all the speculation will ask prohibitive interest, unsustainable) that if these countries stop paying interest, to go to dot the banks are first of all Germans. The rescue
of Greece that Berlin did not want to do, is essentially a bailout of German banks. Now the rescue of Ireland is inevitable, if not, Germany is sucked into the abyss, but the rescue was made more difficult by the German resistance to save Greece. The graph shows the time in which to risk more are not the debtors, the major European creditors. Which means the contagion does not stop at the doors of Club Med, the collapse of Germany PIIGS drag, ie the whole of Europe.
Who allowed banks to earn BOT French and Italian titles up to 20% of gross domestic product in France? Making an investment so crazy?
The law of free movement of capital force in globalization. Ditto for German banks. Overflowing billions of hard earned by German exporters, did not know how to use that gift of God, instead of investing in their country, they thought to buy Treasury bills of the countries most at risk, inflating - for example - the housing bubble in Spain. And no government could prohibit such a stupid investment.
controls on capital movements existed, no longer, the political economy (state-run) is now demonized. The main dogma of the dominant ideology that provides the free movement of capital encourages the development, and public control of the brakes, that the private (banks) know better where to invest the state, which investments where the capital makes it more ...
The result is what you see. Investment in BOT (like any blunt small savings) and houses in Spain (which remain unsold), and in a country - Ireland - 4.5 million inhabitants, which has now benefited from a debt of more than half than Italy (60 million industry in Europe and third largest exporter), but that's very intelligent speculators have invested everything and more, because they read the Wall Street Journal and the Times Fiunancial that Ireland was the model of financialized new economy, global, ultra- because There were taxes to 12% of the business, so-called advanced services (including the porters speak English), cheap labor, little social security ...
When you come to the conclusion that banking is too serious to be left to bankers and their accomplices (central banks), will always be too late.
The thickness of the arrows is revealing. Those who join PIIGS are relatively thin. But look at the big, thick arrows that express the debt of PIIGS to Germany, France and Britain. Italy, which has a debt of 1.4 trillion dollars, it has 511 to France-which means that the smart French banks bought debt Italians for a fee equal to 20% of French gross domestic product. A wise investment, no doubt about it.
and German banks? They have 184 billion dollars in the belly of the Treasury in Ireland, 238 billion of securities English, 190 of Italians, 45 Greeks and 47 billion shares of debt securities Portuguese.
Without the money, the astute German banks are exposed to more than 700 billion with PIIGS: If Ireland is bankrupt, and if the infection spreads to Portugal - and then irresistibly to Spain and maybe Italy - (why to all the speculation will ask prohibitive interest, unsustainable) that if these countries stop paying interest, to go to dot the banks are first of all Germans. The rescue
of Greece that Berlin did not want to do, is essentially a bailout of German banks. Now the rescue of Ireland is inevitable, if not, Germany is sucked into the abyss, but the rescue was made more difficult by the German resistance to save Greece. The graph shows the time in which to risk more are not the debtors, the major European creditors. Which means the contagion does not stop at the doors of Club Med, the collapse of Germany PIIGS drag, ie the whole of Europe.
Who allowed banks to earn BOT French and Italian titles up to 20% of gross domestic product in France? Making an investment so crazy?
The law of free movement of capital force in globalization. Ditto for German banks. Overflowing billions of hard earned by German exporters, did not know how to use that gift of God, instead of investing in their country, they thought to buy Treasury bills of the countries most at risk, inflating - for example - the housing bubble in Spain. And no government could prohibit such a stupid investment.
controls on capital movements existed, no longer, the political economy (state-run) is now demonized. The main dogma of the dominant ideology that provides the free movement of capital encourages the development, and public control of the brakes, that the private (banks) know better where to invest the state, which investments where the capital makes it more ...
The result is what you see. Investment in BOT (like any blunt small savings) and houses in Spain (which remain unsold), and in a country - Ireland - 4.5 million inhabitants, which has now benefited from a debt of more than half than Italy (60 million industry in Europe and third largest exporter), but that's very intelligent speculators have invested everything and more, because they read the Wall Street Journal and the Times Fiunancial that Ireland was the model of financialized new economy, global, ultra- because There were taxes to 12% of the business, so-called advanced services (including the porters speak English), cheap labor, little social security ...
When you come to the conclusion that banking is too serious to be left to bankers and their accomplices (central banks), will always be too late.
0 comments:
Post a Comment