Iniciado por belier

la revisión se hace con la media del mes anterior a la revisión, ¿no?
¿que media tendríamos a día de hoy?

Iniciado por Arte y Cultura

Ya lo dijeron las líneas.... y no lo creísteis....

¿Dónde estarán aquellos triunfadores de los fondos referenciados a Euribor 3m?

Saludos compis......

Iniciado por Arte y Cultura

Saludos compis......

Iniciado por Arte y Cultura

Ya lo dijeron las líneas.... y no lo creísteis....

¿Dónde estarán aquellos triunfadores de los fondos referenciados a Euribor 3m?

Saludos compis......

Iniciado por bolvir

EURIBOR 12 MONTHS (360) 1,252 -0,004 -0,318 3,025 1,252 16/09/2009

Triunfadores en Silencio

Lewis's article shows in scary terms the extent of the chicanery and corruption of Greek civil life.
But it is clear that all modern governments are heading for the Great Default.
All of them play games with their versions of Social Security and Medicare.
The accounting systems of all modern nations are exercises in deception of the public.
Everyone inside the top echelon of governments know this. This has been written about in the intelligentsia's media for years.

There is no political will to resist the voters, who want something for nothing. There is no willingness of voters to listen to the truth. The politician in any nation who trots out the figures and says, "There will be a default," loses at the next election.

The problem is universal. The deferral of dealing with it is well-developed. We are told in the United States that the system can be saved with just a few minor adjustments. Congress never makes these minor adjustments. Why not? Because they are not minor. They are politically suicidal.

Just now the global financial system is consumed with the question of whether the Greeks will default on their debts. At times it seems as if it is the only question that matters, for if Greece walks away from $400 billion in debt, then the European banks that lent the money will go down, and other countries now flirting with bankruptcy (Spain, Portugal) might easily follow. But this question of whether Greece will repay its debts is really a question of whether Greece will change its culture, and that will happen only if Greeks want to change.

The error of the article is to single out the Greeks as if they were fundamentally different from the voters in the rest of the industrial West. They aren't. They are just farther down what Lewis correctly calls the road to perdition.

The European banks are creditors to a government that completely bamboozled them. The bankers look like fools, which they surely are. They are also creditors to governments of only marginally more solvent countries. They are trapped.

The reality is this: the European Central Bank and the International Monetary Fund intervened in May to put up more credit because they believed that a Greek default would undermine the credibility of the banking system.

None of this matters in the opinion of Western lenders. They have extended so much credit to governments that will default that they do not bother to attempt to escape. There is no escape hatch. There are no buyers. So, they pretend, as Greece pretended for a decade, that the debt system is not smoke and mirrors. Anyone who blows the whistle threatens the entire system. Such a person will find his career ended.

No one wants to believe any of this, any more than Greek voters want to believe it. If it really is true, then a Great Default is coming. The banks will be left holding IOUs from bankrupt governments. So, central banks will inflate to save the largest banks.

But at some point, reality will intrude.
The central bankers will have to decide:
Do they want monetary stabilization, interest rates doubling or tripling, government defaults, and worldwide depression?
Or do they want hyperinflation? If they can save the largest banks, they will stabilize. Hyperinflation destroys the economic system.

Governments can nationalize central banks, turning their nations into Zimbabwe. This has not happened to any peacetime Western nation since the aftermath of World War II, and only in the defeated nations.

Ludwig von Mises called hyperinflation the crack-up boom. It is a destructive force. But the alternative is an open default. Politicians fear this. If they nationalize the central banks and force them to buy government bonds, we will bet the crack-up boom.

Conclusion:
Greece is the tip of the iceberg – a Mediterranean iceberg. There is no way that the government will not default. But investors want to believe obvious lies today and face reality tomorrow.

September 16, 2010