In a vicious cycle of sorts, banks and states thus spin down together like two entangled paragliders caught in a mutual embrace of death.
Not excessive government spending but excessive bank lending lies at the root of the eurozone crisis. Here’s why the bankers, not the people, should pay.
We’ve been listening to the same tired old story for almost three years now: if governments don’t cut back on their reckless spending, the euro crisis will escalate and the world will face catastrophe. Collapsing banks, spiraling unemployment, rioting workers — all are said to be the direct result of irresponsible fiscal policies in the lead-up to the worst crisis since the 1930s. And if government is to blame for these ills, austerity is certainly its only cure.
“But hold on,” some hundreds of thousands of protestershave been asking over the past year, “if governments were spending excessive amounts of money, then where did all this money come from? And if we are running out of cash so rapidly that we need to sacrifice social security, education, healthcare and hard-earned pensions in order to keep our heads above the water, then why is there somehow always money left for the bankers when they run into trouble?”
Continue reading “The DOOM LOOP: banks and States in Death Embrace !”
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