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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Haim R. Branisteanu who wrote (75172)	6/13/2011 12:24:10 AM
From: Hawkmoon	2 Recommendations Respond to of 218645

And no reasons as to why you disagree? I think it makes very logical sense that we're sacrificing our national interests in order to prevent a breakdown of the global financial system that would result by the any breakup of the EU. I consider those CDS underwritings to be a form of not so covert foreign aid to Europe. If we wanted the EU to dissolve, we wouldn't be writing them. We'd leave them to hang in the breeze. And we have a vested self-interest in preserving the EU. We certainly don't want to see the deflationary spiral that would result were Eurobonds rendered valueless, driving buyers into the US treasury markets and driving down yields to near 0% (ala Japan). The Fed is trying to pump money into the system, despite the declining levels of monetary velocity (economic transactions). They create debt in order to give capital a place to be parked, and banks a source of income (at taxpayer expense) But it also serves to devalue the USD, and support the Euro at the same time by creating this excess supply of T-bond debt. The problem is that for there to be economic growth, corporate and consumer debt should be the primary drivers, not a government acting as the lender of last resort. Hawk