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

Bank of International Settlements Forges ‘Simple Plan’ to Avoid Bank Bailouts in Market Crash

The Bank for International Settlements has crafted a plan to inject major lenders with more cash, in the event of financial failure, while avoiding market chaos and the need to use taxpayers’ money.

According to BIS’ paper, the central bank forum laid out blueprints on how to recapitalise banks quickly and easily, while also allowing authorities to give an ironclad guarantee that insured depositors would not lose savings. Continue reading