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If anyone is confused about what the real issue in Europe is, the following two charts should explain it all.

Because stripping all the recent rhetoric and bluster about this insolvent nation or that, the real explanation for Europe’s troubles, and the real reason why virtually every country except for Germany, is essentially insolvent (something that has absolutely nothing to do with how much liquidity the ECB can provide, and in fact by making liquidity free to fill transitory needs, the ECB enables even more destructive behavior that does nothing [...]

May 26th, 2012 | Tags: Account Deficits, Best Interest, Bluster, Chart Below Shows, Current Account, Current Accounts, Debt Capacity, Destructive Behavior, Divergence, Ecb, Eurozone, Hub And Spoke System, Implosion, Liquidity, Mercantilist, Periphery, Real Reason, Status Quo, Transgressors, Weidmann | Category: All | Leave a comment


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