The LIBOR kerfuffle, though scandalous is not criminal.
I am operating on the assumption that it has neither the legs or the standing
to change the game.
We knew the banks are insolvent and should be terminated. That would place the losses on the stock and bond holders and the responsibility for the losses on the managers. This cannot be allowed to happen. The "masters of the universe" would be destroyed. The Republican party would be without funds.
In Europe sovereign debt is not separated from bank debt. There is no federal reserve bank or deposit insurance. When the banks fail the sovereigns fail. This failure will be delayed as long as possible. They are very near failure.
Deflation signals sovereign extremis. Deflation is being attempted.
Rather than see the death of sovereignty there will be new currencies.
This means the end of the common currency. Soon.
It might be a winning strategy in the US.
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