This Takes The Cake: Europe Needs More Fiat ... But "Fiscal Rules" Get In The Way

(Commentary posted by Roger Erickson)

Europe needs more capital

Bundesbank Deputy President Claudia Buch welcomes plans by the European Commission to build a capital markets union. In a guest article for the German daily Handelsblatt newspaper, she writes that improving enterprises' access to capital should be the main thrust of the planned reforms.

Bundesbank: treatment of fiscal rules is a cause for concern

The Bundesbank believes that the European Commission's most recent actions weaken Europe's fiscal rules. Owing to numerous exceptions, frequent changes and the increasing complexity of the rules, it is now "barely possible" to apply them consistently, the Bundesbank argues in the current edition of its Monthly Report. It sees the weakening of the binding effect of the rules and of the incentives to ensure sound public finances in the euro area as a cause for concern.

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Gosh, where oh where will they get more fiat capital ... and how will they grow if they can't "balance" their fiat. ... Huh?

What happens when the 99% have no more cake for elites to take?

Words fail me. Cue the Mad Hatter. No wonder it's Greek to them.