Posted by: CS | May 14, 2012

Europe’s New Plan for Financial Debauchery

To prevent social unrest turning to revolt, European governments spend half the national wealth employing mostly useless “public servants” engaged in things like education, so-called, as in teaching kids how to be gay, how to engage in fellatio, etc.; social services, so-called, as in paying off the underclass with sick benefits, etc.; and policing, as in spying on ordinary decent people and enforcing the political correctness laws.

The cost of this program now exceeds the taxpaying capacity of the productive minority so governments have borrowed recklessly to cover the gap. Trouble is, the interest on the debt is now driving the gap even wider, so the new idea is to print money to cover the gap.

The advantages of printing money are that it enables repayment of foreign loans with a debased currency, while stimulating the economy by promoting exports and import substitution. Money printing may also ignite new property bubbles, which are stimulative as they lead to construction booms that cannot be off-shored.

The downside to money printing, which is to say inflating the money supply, is the inflation of the price level. This will cause labor unrest, strikes, etc.and middle-class unrest as savings are progressively wiped out.

The Eurozone’s central problem, a competitive imbalance between Germany and the rest will continue, unless inflation wrecks the German economy, then the whole Eurozone will be in the same basket*.

* The term basket case, incidentally, arose from the practice of South Pacific Islanders to place those for burial in a basket.

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