G8 summit: David Cameron’s plan for saving euro: make Germans pay
Angela Merkel will come under pressure to use German taxpayers’ money to help rescue struggling European countries, including Greece and Spain, by underwriting their debts.
I don’t think they understand. The bank runs have started. The Greek banking system is simply draining away at something ungodly like 0.5% a day. The Spanish system isn’t that far behind.
To a reasonable approximation there just isn’t the time left for a political solution. They’ve pissed about for two years already.
There is a banking/financial solution possible: simply print euros, flood the banking system with new cash so that even as the runs continue the banks stay upright. But if you don’t so that then there just isn’t, I submit, time to do anything else.
This is obviously just musing, but I do wonder about our rulers really. Many of the continentals insist that the whole system is set up to favour neoliberal finance, the banks are too powerful, it’s all big money’s fault.
But they seem not to understand that very big finance at all. They simply d not see that fractional reserve banking is a confidence trick, a very useful one, but a trick all the same. And when that confidence goes, as it is going, the all the Canutes of politics cannot stop the tide.
You’d expect people who insist the system is in thrall to banking to understand a bit more about banking.