Mario Draghi and his European Central Bank take a Wrong Turn in Europe


Draghi, the European Central Bank
president, is trying to sell ‘quantitative easing’ as the cure for Europe’s
structural illness. Not many know what the term actually means, because it was designed to be opaque and contrived to
hide its meaning. The definition is simple enough; ‘buying up all the assets no sane man would take that remain on the
books of EU banks, to polish up their fraud-based balance sheets and allow them
to swan off to another round of speculative investment
.’

In America and England, quantitative easing has
already been tried and failed miserably. High-rolling fraud-infected banks and their
co-conspirators (investment banks) had their bad debts substantially written
off on the premise that they would then be solvent enough to begin lending. Yet they still do not lend, preferring
to go back to their old ways of juicing
the markets and profiting off the rise
.

Meanwhile, in England and America the rich have become
vastly richer as the middle class takes the strain against the harness and the
jobless and under-employed become legion. Both nations are staggering at the
low and middle income levels.
Is this Mario Draghi’s prescription for
a faltering Europe? Having watched the European cow nearly die out on the thin
grass of austerity, does he now mean to sell off its remaining milk to the
fraudsters and the rich?
A touch of background may be helpful: In the heady,
gambling days of deregulated banking, new investment
vehicles
were created. You know what a vehicle is. It’s what you use to
drive away from a robbery. That getaway car has been polished-up, a larger
engine installed and stands ready at the curb. No guns or masks required, as
what was once cause for a prison term has now become an inside job.
One of those vehicles (but far from the only one) was
the sub-prime mortgage scam that gave
crap mortgages to unworthy borrowers, then sold them as repackaged class
triple-A investments, knowing they weren’t worth the paper they were written
on. Within the banking industry, they were known as ‘liar loans.’ In fact, now that they are being foreclosed by the
millions, the paper they were written
on can’t even be found, having been sliced and diced and sold to tens of
thousands of investors. Retired judges have been hired by the banks to stamp
falsified phony documents as authentic, without
ever reading them in a frantic effort to put some paper on the table.
Another was AIG’s toxic Investment Default Swap scheme
that insured against an investment going bad. An ordinary enough idea, it
became a toxic scheme when the same
policy on the same investment
was sold to thousands of investors.
Essentially, an estimated $50 to $70 trillion
dollars of such policies were issued by AIG (and others) without a dime to back
them. It was all gravy, vastly profitable and the insurers were convinced that
markets only go up, so what was the risk?
Risk finally visited the banks and
insurers like Jacob Marley’s ghost in 2008. What
goes up must come down
is an axiom and it all came down around their
ankles. Banks are deathly afraid of what still
remains
on their books from all this fraud and investment engineering, as
well they should be. These trillions in liability are a stinking pile no sane
man or institution would touch, except for one. The European Central Bank is
the lone institution left standing that is insane enough for the challenge.
Mario Draghi is now suggesting a failed strategy for
Europe–quantitative easing—essentially
inventing money to buy this toxic crap
that no one else will touch. Meanwhile, Mario pays not the slightest attention
to what happened when the Federal Reserve Bank in America and the Bank of
England did the very same thing.
There is a better way.
Let the banks struggle with the fruits
of their misdeeds. Take the invented
money
America and Britain wasted (as Draghi now intends to replicate) and
invest it in schools, roads, bridges, sewer systems, green electric energy,
manufacturing, research and development, housing and agriculture.
These are tangible assets, something of
value left at the end of the day, all of which will put people to work and
leave a legacy of lasting value. Europe cannot allow its Central Bank to burn
the furniture to warm the house. There is
no warmth in this scheme
, only misery and another decade of austerity.
There are no investment
vehicles
other than people who can feed, educate and house their families.
Three are things necessary for human health, happiness and advancement—someone to love, something to do and
something to hope for
. All three are achievable and will build a strong,
prosperous, contented and democratic Europe.
Mario Draghi’s quantitative easing
answers none of the three.
If you fancy videos and want another
slant on money thrown away in Britain, check out
How
to Waste £375 Billion
.

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