The 99% saved the 1%, again, today. Six central banks, led by of course, the US Federal Reserve, conspired to pump dollars into the global economy (by lowering the price/interest rate at which they would lend dollars to financial institutions) to soothe the fears that Europe’s sovereign debt crisis would flare so brightly that it burned the world. (The six banks are the Fed, the ECB, the Banks of Japan and England, the Swiss National Bank and the Bank of Canada).
It must never be forgotten that money doesn’t buy anything. Only goods and services buy things. Every dollar the Fed prints is a claim–a tiny tax, if you will–on the efforts of an American producer of goods and services. Now the Fed is printing dollars, i.e., creating money out of thin air, in order to rescue Europe. Wasn’t engaging Hitler in World War Two enough?
Ironically, the American action serves again, in some manner, to rescue Europe from Germany. Germany is preaching austerity at the sovereign, Euro-member level as the price for keeping the European Union together. Of course, the Europeans that would face austere circumstances in return for Germany sticking with the Euro believe Germany is being unreasonable. Maybe the US should have just stayed out of Europe during WWII. The continent might have been better managed in the interim by the Germans, than by the individual spendthrift countries that now, again, look to the US to save them from the possibility of German hegemony.
But this is classic 99%’er stuff. The money to rescue Europe is a direct claim on the goods and services produced by America’s 99%. That’s what it means to dilute the value of dollars by vastly increasing their quantity. Where are the protests by Occupy Wall Street or the Tea Party? Americans, not Greeks and Spaniards, should be the ones marching in the streets.
America has done enough through the years to save Europe. It defused Europe’s social tensions by providing an escape for its excess populations and surfeit of malcontents. It cleaned up the international mess left by European colonists in far-flung corners of the globe after the World Wars (which were really mainly just European wars, but to Europe’s thinking, Europe is the world). It defeated Hitler and pacified Germany. It protected Europe after WWII under a nuclear umbrella so efficient and effective that the continent enjoyed the most extended period of peace and prosperity it has ever known. Now Europe comes again to America, hat in hand, to get help fixing problems of their own device, else Germany threatens to fix the problems for them. It is high time America quit enabling Europe’s slovenly, recalcitrant, corrupt, EU-cheating, welfare states. Germany’s got the right idea. Austerity is the only answer. It’s time America stand aside. Let the continent fall under German sway. It’d be hard to imagine how the outcome could be worse than what’s already obtained.
A good article explaining the central banker action, and the temporary effects it is having on the psychosis-afflicted debt and equity markets can be found in the Wall Street Journal, here.