Thursday, October 20, 2011

Too big to save

U hear this about
Italy these days

Total outstanding sovereign debt
plus a trillion and near a trillion and a half euros


Peanuts really
for the league of MNC CB's

Ie corporate clique dominated
And
decisively influenced
central bankers

Even the ECB acting alone can simply create that without much real consequence on prices
Asset
commodity
Industrial Product
wage rates
or otherwise

Value of euro ?


Well that is where the other league members enter

To preserve the forex relationships more or less as is
The others might need to increase euro reserves
And add more other moneys into the global currency systems

Two words there apply

Liquidity trap

Both ongoing and global