German Fear of Inflation is Causing Collapse of Europe

 

Germany’s obsession with anti-inflation policies inspired by the Hyperinflation of the 1920s is so misguided that it is now threatening to collapse all of Europe. Former ECB banker Lorenzo Bini Smaghi has now even called to rescue the Italian banks with European taxpayers’ money. He is correct in warning that the insistence of Germany on the prohibition of state funding bailouts could evolve into a threat to the entire European financial system. The ECB is desperately trying to support the euro, but a strong currency only promotes deflation – not recovery. Continue reading

EU Banks Need $166 Billion, Deutsche Bank Economist Tells Welt

Let us not forget about the monstrous derivative exposure of Deutsche Bank: $72.8 trillion. They’re looking like the next Lehman Brothers.

Video available for viewing at website.

 

Europe urgently needs a 150 billion-euro ($166 billion) bailout fund to recapitalize its beleaguered banks, particularly those in Italy, Deutsche Bank AG’s chief economist said in an interview with Welt am Sonntag.

“Europe is extremely sick and must start dealing with its problems extremely quickly, or else there may be an accident,” Deutsche Bank’s David Folkerts-Landau said, according to the newspaper. “I’m no doomsday prophet, I am a realist.” Continue reading