They could skip the "bond purchase" bit and just hand over banknotes hot off the press, wouldn't make much difference since the bonds will never be paid off. But that would be even less delusionary.AgentR11 wrote:So, yeah, there's a very real reason the printer -> bank -> bond purchase is done, as opposed to printer -> bond purchase. The first maintains the illusion of value; the second does not.
Many here support the market/capitalist system so there must be someone out there who can explain how/why this can happen
Quinny wrote:So if the middleman was cut out in the above transaction there would be less food to go around??
Quinny wrote:
Why didn't the ECB simply loan at low interest rates directly to the Greek/Italian etc government?
AgentR11 wrote:Sorry, but I'm allergic to the diet of the Cuban peasantry.
To great a T-Bone and Guinness deficiency.
Quinny wrote:Could someone please explain to me why the ECB recently lent money to the banks at virtually no interest so they could then use it to buy bonds to support PIIGS debt? These bonds mean that countries are paying high interest rates that screw up their cances of recovery.
Revi wrote:Basically what everyone is saying is that this is a way to keep the scam going. I just listened to a really good podcast from the Automatic Earth about rehypothecation. Basically what she says is that the whole big ponzi scheme is about to come crashing down and the thing to do is to get out with some cash if you can soon. The center is going to try to grab as much as they can from us little people so we need to try to find a place where they can't steal what we work for.
Listen to it and tell me what you think. It's the first half of the podcast:
http://theautomaticearth.blogspot.com/
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