Whatever boneheads thought that supra-constitutions were better for economic stability or governing anything had more than a few loose marbles. Basically, such stupidity undermines both free enterprise and democracy , thereby destroying the fabric, inspiration and motivation of a society while concurrently leading to oppressive states that garner Soviet-style sluggishness and inefficiencies.
Now, if you recall the Soviet system fell apart just for the reasons mentioned above - meaning that it was a perfect time for the Eurozone to copy their failed ideology ( so who needs a book to figure out common sense issues? - More dumb!)
Repeat after FFI folks, "Tear Down Those Walls Mr Gorbachev"
Mervyn King: The Eurozone is Doomed
The eurozone is doomed to fail and will lurch from crisis to crisis unless it is broken up, according to the former governor of the Bank of England.
In his new book, Lord King claims that steps towards fiscal union will not quell tensions in the 19-nation bloc and could even tear it apart.
He warns of a looming “economic [and] political crisis” triggered by endless bail-outs, austerity demands and pressure from the “elites in Europe” and the US to create “a transfer union” to solve the eurozone’s woes.
READ MORE
China central bank cuts reserve requirement ratio by 0.5 percentage points
China's central bank, the People's Bank of China, has cut further the reserve requirement ratio, the amount of cash the country's banks have to hold, in an attempt to calm investor jitters over the world's second largest economy. The PBOC cut the ratio ...
China expects to lay off 1.8 million workers in coal, steel sectors
The central government will allocate 100 billion yuan ($15.27 billion) over ... There are many issues to be dealt with, including how to pay debt as well as layoffs.
Financial Precipice à la 1929?
There is a huge laundry list of leading economic indicators I could point you to for visualizing the sick economy, but perhaps the king of all leading indicators is the price of oil. It has absolutely cratered in the past year and a half. It’s gone from well over $100 per barrel to now hovering around $30 and flirting with the idea of going lower, a 70%+ decline. Now why would oil drop in price so dramatically?
Is it because the Saudi’s are trying to drive the American shale industry out of business? No, it’s much simpler than that. People simply don’t need as much oil because they aren’t producing enough goods because there aren’t enough people willing to buy those goods. When demand dries up, sellers are forced to lower prices to entice buyers to keep buying.
China Devalues Yuan as Stocks Crash
With China devaluing its currency, stocks crashing 3 percent and capital flight accelerating, China has cut back its bank reserve requirements to free up $100 billion in credit.
Facing pressure from huge capital flight, the Chinese allowed their yuan currency todevalue to 6.6 yuan to the dollar on Feb. 29, causing local stock markets to crash by 3 to 5 percent — to levels not seen since late 2014.
To try to stop the rout, China’s central bank cut its deposit reserve requirement ratio by 50 basis points, to 17 percent, in an effort to free up about $100 billion in new credit for the world’s second-largest economy. The cut marks the fifth time in the last 12 months, but the first time since October 23, that China has had to reduce bank solvency to deal with financial panic, according to Stratfor Global Intelligence.
READ MORE
