The World Is Drowning in Debt, And Europe Laces On Concrete Boots
by Charles Hugh Smith
Three metaphors describe Europe: drowning in debt, circular firing squad and trying to fool the money gods with an inept game of 3-card monte.
The world’s major economies are drowning in debt–Europe, the U.S., Japan, China. We all know the U.S. has tried to save its drowning economy by bailing out the parasite which is dragging it to Davy Jones Locker–the banking/financial sector– and by borrowing and squandering $6 trillion in new Federal debt and buying toxic debt with $2 trillion whisked into existance on the Federal Reserve’s balance sheet.
It has failed, of course, and the economy is once again slipping beneath the waves while Ben Bernanke and the politico lackeys join in a Keynesian-monetary cargo-cult chant: Humba-humba, bunga-bunga. Their hubris doesn’t allow them to confess their magic has failed, and rather than let their power be wrenched away, they will let the flailing U.S. economy drown.
Europe has managed to top this hubris-drenched cargo-cult policy–no mean feat. First, it has indebted itself to a breathtaking degree, on every level: sovereign, corporate and private: