Thursday, May 11, 2017

Don Quijones — In Bleak Prognosis, Italy’s Financial Regulator Threatens EU with Return to a “National Currency

Italy has no way out but out of the EZ unless the European elite shifts course. The financial vise is tightening.

Raging Bull-Shit
In Bleak Prognosis, Italy’s Financial Regulator Threatens EU with Return to a "National Currency"
Don Quijones


Noah Way said...

Greece v2.0?

Andrew Anderson said...

And that’s before you get to the fact that the Eurozone has created the worst of all possible worlds with the so-called Bank Recovery and Resolution Directive which went into effect in January 2016. It fails to provide for one of the key requirements of a sound banking regime, which is backstopping deposits (that is left to nation-states, many of which have deposit guarantee schemes which are not adequately funded. A deposit backstop should be provided by the regulatory authority, particularly since it is the Eurozone, and not Eurozone members, that controls currency issuance). While the US doesn’t have a credible regime for resolving too big to fail banks either, unlike the BBRD, it didn’t spend years creating a post-crisis set of regulations that actually increases the odds of bank runs. Yves Smith from

So the banks get to create deposits/liabilities ("Bank loans create deposits") that the rest of us, including the less so-called creditworthy, the poorer, have to insure! Sound fair? Not to me.

And when I tried to explain that individual citizen, business, etc. accounts at the central bank would be risk-free I'm told the idea is "balmy" because the central bank always has been and always shall be a bank for BANKS ONLY in the private sector! An argument from tradition from a so-called Progressive!

Andrew Anderson said...

Oh and I got banned too; apparently because her position could not be defended without resorting to cheating..