19-Jul-11 News -- Europe panics, as Fed considers bailout

[John]

19-Jul-11 News -- Europe unravels in panic, as Fed considers a European bailout


Cliffhanger: Will Greece default on its debt this week?

** 19-Jul-11 News -- Europe unravels in panic, as Fed considers a European bailout
** http://www.generationaldynamics.com/cgi ... b#e110719b


** 19-Jul-11 World View -- U.S. - Gaddafi representatives meet in Libya
** http://www.generationaldynamics.com/cgi ... 19#e110719


Russia asks U.S. to cancel Cold War anti-Communism law



Contents:
"Europe unravels in panic, as Fed considers a European bailout"
"Bitter disagreements"
"How much of a haircut?"
"What will happen in Europe this week?"

### World View -- U.S. - Gaddafi representatives meet in Libya
"US officials meet with representatives of Libya's Gaddafi"
"Russia criticizes the West's backing of Libyan rebels"
"Russia asks U.S. to cancel Cold War anti-Communism law"
"Canada worries about commemorating the 200th anniversary of the War of 1812"
"East Africa's drought and famine - worst in a generation"
"Senior adviser to Afghan president Karzai shot and killed"
"Israel requests bids for hundreds of West Bank settlements"
"Israel prepares to intercept French yacht headed for Gaza"

Keys:
Generational Dynamics, Europe, panic, Greece, Helmut Kohl,
Angela Merkel

Keys:
Generational Dynamics, Libya, Muammar al-Gaddafi, Sergei Lavrov,
Canada, War of 1812, East Africa, Somalia, Kenya, drought,
Hamil Karzai, Israeli settlements, Freedom Flotilla II

[vincecate]

It would actually be enjoyable to watch this spectacle, if it weren't for the fact we're all part of the movie, and we're all going to get screwed. As I've said before, we're really watching a horror movie that we're part of, but the doors of the theatre are locked, and we can't get out.

The book, "This Time Is Different: Eight Centuries of Financial Folly" lets us know generally how this financial folly will play out.
1) Banks loan out money long term while promising depositors can take
out money at any time.
2) Banks get into trouble
3) Governments bail out banks or depositors
4) Government debt gets into trouble
5) Central banks bail out governments by printing money
6) Paper money drops in value

The next step is "Paper money drops in value". You can tell at least some people understand this as gold hit a record high yesterday, so not everyone will get screwed equally. The exact details of which currencies fail with hyperinflation and which drop some finite amount has not been revealed, but the basic plot seems clear at this point. The suspense is only in the details.

[RDRUNR]

"Canada worries about commemorating the 200th anniversary of the War of 1812"

As a Canadian, I am very proud that Canada won the War of 1812 vs the Americans. While we couldn't do this in 2012, it's neat to see the White House is still white because of Canada.

Who else has won a war vs the USA? Anyone other than Canada?

Go Canada!!

[Guest]

It fascinates me to see that everyone who looks at the real numbers says the same thing, debt increases due to wars first, bailouts second, and social programs coming in a distant third. To listen to Congress, you'd think the wars were free, the bailouts all got paid back ages ago, and the social programs are the real problem in managing the debt.

I propose a new term, "congressional truth"! Congressional truth means you know it's just spin, but it is in the news and being reported as if it was fact.