Passing the buck

Hi all,

The economic equivalent of passing the buck is occurring once again in Europe. According to the NY Times article Europe Gets Ready for Round 2 of Bank Loans, governments are preparing for another bailout. But bailouts do nothing more than transfer the debt from the private sector to the public, leaving the underlying, systemic problems untouched.

As usual, the article dances around the true meaning of what is going on by not mentioning the important fact that the lender, the European Central Bank, is a public institution drawing funds from the public dole. So, Tom, Dick, Harry and their grandchildren are now going to be saddled with a few hundred billion more Euros of debt. Eventually the scheme will collapse when the governments funding the ECB next go bankrupt … which is in fact the very thing they are trying to fix. Its a circular, downwardly spiraling implosion.

Fundamental structural change is needed immediately.

– kk


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