Theresa May {warned|cautioned|alerted|advised} in her {conference|seminar|meeting} speech {about|around} {low|reduced} {interest rates|rate of interest|rates of interest} {fueling|sustaining} inequality. Donald Trump {rages|raves|surges} {against|versus} the chair of the Fed, Janet Yellen. Germans are restive {about|regarding|concerning} the lax {monetary|financial} {policy|plan} of the ECB. What has {gone wrong|failed}.

1. Financial Doomsday Approaching for Europe as Central Banks
Ignore Red Lights
teamsteverhyner.com/financial-doomsday-approaching-for-europe-as-central-banks-ignore-red-lights/
“Theresa May warned in her conference speech about low interest rates fueling inequality. Donald Trump rages
against the chair of the Fed, Janet Yellen. Germans are restive about the lax monetary policy of the ECB. What has
gone wrong?”
This is the question the former British foreign secretary and a former leader of the Conservative Party William Hague
posed by in his new piece, “Central bankers have collectively lost the plot.”
William Hague refers back to 2008 when central banks reacted to the financial crisis they had completely failed to
foresee “by cutting rates to record lows and embarking on “quantitative easing” – pumping trillions of dollars into their
economies by buying up the assets of commercial banks.”
Falling State of Economy
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2. Falling State of Economy
However, as he pointed, the trouble now is that eight years later the banks are, two varying degrees, still doing it. He
used the analogy of doctors keeping their patients on a drip many years after an operation to explain his case,
saying: they are losing credibility and producing very dangerous side effects.
His mentions 10 serious drawbacks that could become either politically explosive or economically unwise.
They include central banks starting to buy up corporate bonds, not just government bonds, to keep the system
inflated; and banks finding it harder to run a viable business contributing to the banking crisis that is now visibly
widespread in Italy and Germany in particular.
Italy’s Sick Banks
Talking about Italy, a question has popped of late about the possibility of Italy following the UK’s example to leave the
European Union. This is because Italy’s central bank has been building up a lot of liabilities to the Eurosystem which
– as of the end of September stood at about 354 bln euros, up 118 bln from a year earlier — and up 78 bln since the
end of May, before the U.K. voted to leave the EU.
According to Bloomberg, this is as a result of people’s worry about the state of the country’s banks, which are
presently suffering the consequences of bad lending, poor governance and a new euro-area oversight system that
makes rescues difficult.
Another factor could be political. The Italian Prime Minister Matteo Renzi has staked his fate on a December
government-reform referendum that, if it goes against him, could strengthen opponents who want to force a vote on
whether Italy should remain in the common currency.
Euro on Slippery Slope
The Union, in itself, is not at ease
especially for its crumbling single
currency as described by one of its
euro’s designers. Professor Otmar Issing recently attacked eurocrats and German leader Angela Merkel for
betraying the principles of the euro and being incompetent over its management. He said their incompetence had
created an “overwhelming moral hazard” which could bring generations of misery to hundreds of millions of ordinary
Europeans.
He says:
“One day, the house of cards will collapse. Realistically, it will be a case of muddling through,
struggling from one crisis to the next. It is difficult to forecast how long this will continue for, but it
cannot go on endlessly.”
He also described the Euro project as being on a “slippery slope” and predicted that the currency is so troubled that
it will not survive the next global financial downturn, no matter how much political will there is to save it.
Otmar concluded that an effective EU economic government with debt pooling and an EU treasury was the only way
to save the ailing euro which he says is unlikely to survive a coming crisis. However, for that to happen, there would
be a need for a change to the German constitution which is unlikely because of the current political climate.
Re-posted from www.cointelegraph.com by Olusegun Ogundeji October 19, 2016
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3. Not only are central banks ignoring the red lights, they’re ignoring the red flags. Really, it’s only common
sense. Flood your country with dollars and sooner or later the inevitable is going to happen. Currency
becomes less and less valuable especially when there is nothing back up said currency. Google inflation in
Germany early 1900’s. Or watch Mike Maloney’s You Tube series entitled “The Hidden Secrets of Money”.
History does tend to repeat itself. Be prepared or at least make an attempt to protect your purchasing
power and protect your financial assets with gold, silver or other hard assets. Click here for more
information.
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4. Steven L. Rhyner
Thank you for reading my posts! If you would like to connect, reach out to me on
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