Europe’s Botox Bailouts on a Corpse
By: Gary North
Sep 21, 2011
It’s a bit like botox. It looks good for a while but will eventually start to sag again.” ~ Katherine Garrett-Cox
Mrs. Cox is the chief executive of England’s Alliance Trust investment fund. She has dismissed Europe’s attempts to solve its debt crisis as “economic cosmetic surgery”, warning there is “more pain” to come over the next few months. So we read in the London Telegraph.
The media are beginning to smell blood in the water. Like sharks, they are heading for the source: the European Monetary Union (EMU). Unlike an emu, the EMU cannot move very fast. But like the emu, it turns out that it cannot fly.
THE SLIPPERY SLOPE
Reuters ran this headline: “Sliding toward financial crisis.” The article began with this accurate paragraph: “Three years after the collapse of Lehman Brothers, the world’s financial system is sliding toward another major crisis.”
It pointed out that the economic recovery in Europe is on the line. Over the weekend, finance ministers of the European nations met in Poland to discuss the extent of the fallout from the default by the Greek government on its debt. Nothing was resolved.