I find myself laughing, yes laughing, involuntarily at the absurdity of the schemes to issue more debt or paper in Europe. The latest rumor has the IMF acting as the grand inflator. I was rooting for Greece to have an outright default, but instead it and Italy have been taken over by members of the international banking elite.  Goldman Sachs is trying to accomplish with paper what the Austrian and French empires could not succeed at with more traditional methods, namely, control of these countries.

There will have to be an Italian “spring” and a Greek “spring” (just to mention a few) in order for ordinary people everywhere to repudiate the massive sovereign debts that have been incurred by the unholy alliance of banks, central banks, and their out-of-control governments. Governments issue debts that go into the portfolios of banks. When the value of this paper falls steeply, as it has, the banks become insolvent. The governments, also insolvent, lose a sink for their sea of paper. Both banks and government become desperate. The absurdity enters when they fashion rescues with — ever more paper! If the ECB won’t flood the system for the Europeans, then maybe the IMF will be their de facto central bank, or maybe Obama will signal Ben Bernanke to open his faucets yet again.

The Best of Michael S. Rozeff