European Bank Run: Here Comes Recession

Written by Gary North on November 23, 2011

When The New York Times has figured it out, it’s real. This story reports on what amounts to a run on the banks. Rich investors are selling PIIGS bonds, pulling out of PIIGS banks, and fleeing for safety. This forces up interest rates in PIIGS countries. This forces banks to raise rates to borrowers. This […]

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Bureaucratic Lunacy: EU Denies That Water Stops Dehydration

Written by Gary North on November 18, 2011

North’s law of bureaucracy is simple to state: “Eventually, some bureaucrat will follow the rules exactly and do something incomparably silly.” A fine example of this law is a regulation from the European Union’s bureaucrats that sellers of bottled water are not allowed to claim that their products, made of 100% water, reduce dehydration. De-hydration […]

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European Loophole: How to Inflate Legally

Written by Gary North on November 18, 2011

The only institution with enough money to bail out the PIIGS is the European Central Bank.  The threat of a domino effect is increasing. By treaty, the ECB is not allowed to buy the debt of governments. It gets around this by lending to banks that buy government debt. But the bankers are beginning to […]

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The Pain in Spain: Bond Prices Fall Sharply

Written by Gary North on November 16, 2011

We have read about Greece. It is obviously gong to default on its loans. The Eurocrats are pouring hundreds of billions down a rat hole to provide the Greek government with money to pay interest on its huge debt. They will pour lots more. Italy is heading in the same direction. Its bond prices are […]

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Europe: Like Drunks With Hangovers and Big Bar Tabs

Written by Gary North on November 15, 2011

If you think of the European debt crisis in terms of taverns (banks), drunks (governments), and a distillery (the European Central Bank), you will begin to understand the reasons why it is getting worse. The governments are like drunks who have run up large tabs as the local tavern. Some drunks have huge tabs: the […]

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