Trillions to save the Euro? World currencies, a house of cards!

The Euro, the common European currency, was bound to fail. One can not bind together nations with totally different economic system, with totally different citizen’s attitudes into one Union. While Germany kept fiscal discipline (well, relatively), German Unions and German workers kept moderation, while other countries took advantage of cheap credit and stable currency and incurred huge debts and huge salary increases like there is no tomorrow. The salaries in the crisis countries are much higher than, for example, in Germany. So underpaid German workers now will bail out the highly paid Greek workers, that have more vacation and retire earlier?

The bail out favors banks, who earn high risk premiums on interest, while the government assumes risk and buys bad credit. All this in violation of the EU no bailout clause. And giving financial incentive for risky behavior by banks.

Greece should have been allowed to go bankrupt. That is market economy. Let someone else buy the failed banks and continue running them. Let the bank managers be arrested for doing unsound business. The bank must not loan money that can not be repaid.

  • Additionally, every nation in the world, including Germany and the USA, have too high a debt.
  • And that a system based on compounded interest can not work in the long run ( 1 cent with 4% interest yield in 2000 years  $0.01 * 1.04^2000=  1.16594643150219980412675240849 e+32=  $ 1165946431502199804126752408490
One should start asking questions why countries can not be run without resorting to debt.

Human-Stupidity is just giving food for thoughts. We are just pointing to the stupidity that might ruin entire populations.

World currencies, country finances, world economy is seriously stupid, based on stupid belief, based on greed of banks, politicians, and yes, the normal citizen who wants his benefits now, on loaned money.

Countries should repay loaned money in times of strong economy. Not increase loans more and more. That is Keynesian economics.

Spiegel Online International: Top Economist on the Euro Crisis; ‘
The German Government Will Pay Up’, June 27, 2011

In a SPIEGEL interview, leading German economist Stefan Homburg argues that euro-zone members should not bail out Greece, discusses who is making a profit from the crisis and explains why he himself is buying Greek bonds. "I believe in the boundless stupidity of the German government," he says.

More related articles

All quotes from :
Spiegel Online International: Top Economist on the Euro Crisis; ‘The German Government Will Pay Up’, June 27, 2011

In a market economy, even in the case of a plumber whose customers don’t pay their bills, it’s never a question of getting creditors "involved" (in helping to deal with a bankruptcy). Instead, when push comes to shove, it is creditors, and creditors alone, who have to write off their loans. Only then do they have an incentive to carefully choose who they lend money to. A market economy with no personal liability cannot function. The government bailout initiatives create misdirected incentives that continuously exacerbate the problems on the financial markets.

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Perjuring Goldman Sachs executives: Wrong religious morality endangers your savings, countries’ currencies and finances

Why Isn’t Wall Street in Jail? |Rolling Stone

Financial crooks brought down the world’s economy — but the feds are doing more to protect them than to prosecute them […]

Goldman Sachs New World HeadquartersThe rest of them, all of them, got off. Not a single executive who ran the companies that cooked up and cashed in on the phony financial boom — an industrywide scam that involved the mass sale of mismarked, fraudulent mortgage-backed securities — has ever been convicted.

The immorality of Wall Street

Human-Stupidity was wondering long ago why Rating institutes’ AAA ratings for junk (causal for world economic collapse) went unpunished. Not only is the financial sector one big behemoth that profits from unproductive gambling in financial markets, The financial sector fraudulently rigs the game, gains immorally high commissions and ruins the world economy, banks, and entire countries like Ireland and Iceland.

When caught red handed, executives at Goldman Sachs, unaware that their own memos and emails had leaked, blatantly denied their wrong-doings under oath. What are the conclusions?

We need true morality in big world-moving issues.

  1. We need morality in economy and business. Maybe a Western Confucianism.
  2. Profit should come from production, not from financial gambling and fraud
  3. Big fraudsters need to face punishment.
  4. Or maybe the lesson is: Destroy your tracks. Don’t send and keep incriminating emails. When planning to con your own customers, don’t discuss it in writing

Our moral philosophers, religions, churches fail, philosophizing about silly issues like:
birth control, the beginning & end of life, sex & possession of child porn

Our churches, moral apostles and philosophers fail miserably. Entire countries get plundered, the world economy gets shattered, currencies are a house of cards waiting to collapse under collective debt. Banks make immoral profits from the world’s miseries. Our moral guides and philosophers are caught up in silly issues like

Our religions and moralists are just as useless and damaging as banks.

The People vs. Goldman Sachs

A Senate committee has laid out the evidence. Now the Justice Department should bring criminal charges

They weren’t murderers or anything; they had merely stolen more money than most people can rationally conceive of, from their own customers, in a few blinks of an eye. But then they went one step further. They came to Washington, took an oath before Congress, and lied about it.

A legal system that allows the financial sector to make huge gains while producing nothing, or worse, destroying the productive economy.

Total dishonesty. Outright fraud. Impunity. Rating institutes that give AAA rating to junk and don’t get punished. Governments that bail out banks instead of letting them pay for their mistakes.

Government and nations borrowing like there is no tomorrow

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Let Portugal default on debt! Will USA default too?

The European Union, in violation of its non-bailout clause, guarantees debt for its defaulting members.

  • This just postpones the problem of the huge debt which will come due at a later time.
  • It also does not solve the structural problem, that countries with very different attitudes and politics are ties to one currency.
    • Did you know that in the rich productive countries of Europe, like Germany, salaries are lower, the retirement age is higher, Now try to tell a Greek or Portuguese worker to reduce his salary and retire 5 years later. This is why we have riots all over Europe.
    • So either break up the monetary Union to separate countries with different monetary situation
    • Or let the markets decide. Once a country defaults, the lenders will get the message that they should check how credit worthy a country is, before lending their money.
  • Almost all countries in the world increase their debt every year. No payback schedule in sight. Only ever growing debt.  Critics think the debt of almost all countries in the world is unsustainable.

Weinberg said there is nothing on the table that can stop the euro zone falling into crisis.

“Not only is there no solution in hand, but there is no inkling that any idea on the table at this summit could plausibly avert a default on substantial portions of euro land’s sovereign debt,” he wrote.

“Lending money to already over-borrowed nations does not help or fix them. Also, no plan exists for strategies to cope with the fallout of a sovereign default should one occur,” Weinberg added.
Is Europe Slipping Towards Default?

Marc Faber: If The U.S. Was A Corporation, Its Credit Rating Would Be Junk (Video)

The entire world economy is driven by blindness and greed. Greed of corporate executives, of politicians, and yes, greed of the citizens who want their perks, high pay, and little work. Keep borrowing till the world financial system collapses. Keep bailing out to buy a bit more time, the delayed collapse will be even worse.

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Rating institutes’ AAA ratings for junk (causal for world economic collapse) unpunished

Rating agencies gave AAA ratings for junk financial instruments, out of financial conflict of interest.   Still they remain unpunished.  The stupidity here is a system where greedy incompetence is rewarded and not kept in check by law.

The sheer fraud and greed of rating agency analysts and executives is staggering. That no one has gone to jail, and none of the agencies have been shut down is a travesty of justice on an infinitely larger scale than Bernie Madoff’s Ponzi scheme. Until depositors, bankers and investors regain confidence in the quality of ratings we rely upon to measure financial stability and creditworthiness, the tremors that underlie the credit crisis will drag on indefinitely.   […]

The problem with the business of rating the issuers of securities, and rating the securities they issue – such as mortgage-backed securities and collateralized mortgage-backed obligations – is that the rating agencies are paid by the issuers to rate them. Objectivity aside, ratings firms are in business not to rate but to make money for themselves by rating issuers and their securities. It’s like all the contestants in the Miss World pageant paying the judges with country funds … who’s not going to be judged beautiful?

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