When money moves from one country to another, the central bank of the receiving sovereign must lend an offsetting amount to its counterpart in the source country — a mechanism that keeps the currency union’s accounts in balance. The Bank of Spain, for example, ends up owing the Bundesbank when Spanish depositors move their euros to German banks. By looking at the changes in such cross-border claims, we can figure out how much money is leaving which euro nation and where it’s going.
This analysis suggests that capital flight is happening on a scale unprecedented in the euro era — mainly from Spain and Italy to Germany, the Netherlands and Luxembourg (see chart). In March alone, about 65 billion euros left Spain for other euro- zone countries. In the seven months through February, the relevant debts of the central banks of Spain and Italy increased by 155 billion euros and 180 billion euros, respectively. Over the same period, the central banks of Germany, the Netherlands and Luxembourg saw their corresponding credits to other euro- area central banks grow by about 360 billion euros.
People go south for the sun.
Money moves north for the security.
It is a wonderful world.
And sewage always flows downhill.
I have been really studying current economics for some time. I make a good living analyzing and interpreting complex data.
In an historical macroeconomic sense it is hard to get a handle on the possible outcomes of all the activity of the Euro and the USD, I am comforted by the fact that nobody else, even the best in the world that can be found on the internet, seems to have much of a clue as to what’s going to happen economically. The only consistent theme is it is going to be bad news. All I can say, from my best efforts, is inflation, probably fairly hyper-inflation, is inevitable, and may be imminent. Thank you for your attention. Have a nice day.
Yop said: “…it is hard to get a handle on the possible outcomes of all the activity of the Euro and the USD…”
Yes it is, and given the compute resources available to -everybody- who cares, that should not be the case. Which means we don’t have all the info. Things are being done off-the-books and nobody is telling us proles.
Therefore the safe assumption is its crooked. Fixed. Thumb on the scale.
Can’t fault your assessment of the probable short term outcome. Its the obvious and inevitable other leg of Barry’s monetary “policy”. Borrow heavily, spend profligately, and “repay” with inflated funny money.
Having lived through the inflation of the late 1970’s as a young man my heart goes out to the kids just starting today.
Still, its better than the other old standby, the “Short Victorious War” scam.
And sewage always flows downhill.
Posted by: foobert at April 14, 2012 11:44 AM
Except when it is still in the bowl, pre flush 🙂
Fractional reserve banking at its finest! Germany with its increased reserve ratio will now lend back Italy and Spain their own money to “bail” them out, and at the same time chastise them for being lazy.
Funny how they finaly achieved what they set out to do in 1939 by using a phony banking system
There is a consorted effort to loot western economies, lower the average standard of living, and populate with the Third World. It is called “Progressivism”!
They the unelected elites, monarchies, and corpocracy’s of the western world, follow a well established global plan readily available at their website called Agenda 21. It is the blueprint of a One World Government.
The administrators of this plan are unelected bureaucrats at the UN, (see Nigel Farage & Daniel Hannan).
There is no mistake that Obamba has filled his administration with global banking executives and Wall Street miscreants. There is no mistake that Obamba has fully complied with implementing Agenda 21 in the US. This is why so many unconstitutional Executive Orders and why Defense Secretary Leon Panetta can sit in front of congress and say he takes orders from the UN not congress.
http://www.youtube.com/watch?v=5zNwOeyuG84
In fact I believe there is no coincidence that there is today an unelected Socialist Progressive Premier in Alberta who has worked for and closely with the UN.
We have been lied to, massive third world immigration, public & private debt, open borders, foreign entanglements, domestic security, environmental worship and taxation et al. These occurances are nothing more than the implementation of the vast plan of global governance by an elite few to have the power and wealth over the many.
You bet we won’t “recover” given our current course, it’s not designed to.
Knight 99 I think you are correct BUT as of the 23rd of this month I hope to see you post that Alberta elected a Wildrose Party.
I agree knight 99
However there are also world elites who ARE on our side as well don’t forget that , it aint all the coporations and elites are bad …most are but not all.
You will see an embarassing defeat of a one world govornemntal official on the 23 of april mark my words all the talk is about wild rose setting things right and literally being the center for economic prosperity in the future .
TEXAS will continue to fight as well as many other little hot spot’s through out the world .
I am right on board with the agneda 21 thing i see it i understand it ..they will never be able to run the entire world in it’s current state so they must break every nation down to the basic govonrment dependant individual of every nation ….they know the u.s. is the toughest so they started there the fish rot’s from the head down .
once obama is gone romney/PAUL who ever wins will start the process of nation building ie. the u.s. once the u.s goes offline to other nations look out.
Americans will be ready the evil will be exposed , the russians and chinease set out many decades ago to destablise the u.s. watch uri brezmianov’s video’s it was a quiet war that the soviets are still waging against the u.s. as soon as the u.s. let russians immigrate they started this attack. the chinese are helping them and the .u.n. is the distraction and a very good one!!! why are universities in the u.s. teaching leftist marxist drivel ? becasue they are told to !!!
Knight99 is absolutely right in the dangers of agenda 21. By 2015 they are supposed to accomplish the following:
eradicating extreme poverty and hunger,
achieving universal primary education,
promoting gender equality and empowering women
reducing child mortality rates,
improving maternal health,
combating HIV/AIDS, malaria, and other diseases,
ensuring environmental sustainability, and
developing a global partnership for development.
All noble causes but pay attention to the last one. That should send red flags up for who has not had a lobotomy. That IS world government and thankfully Harper recognized it as such.
I agree with Knight99 and peterj.
Distribution of wealth from the US and other prosperous nations to those who are not has been underway for quite some time.
Their lofty ‘aspirations’ in their Agenda 21 belie their actions.
One of which was to send troops to Uganda, take every Farmer’s farm , kill the farmer and “plant trees”.
The ultimate aim and underlying theories is what will do in Agenda 21.
Especially when it is being implemented by thugs and murderers who are at the UN pretending to be legitimate heads of state.
I am glad that Harper recognized it but it is not enough for they are everywhere.
In Alberta. In Vancouver and B.C. and elsewhere.
The sooner they are exposed, as one is poised to be on April 23, the sooner we can get on with righting this situation for all mankind, especially the US and Canada.
Mitt Romney appears to be the nominee for the GOP and the sooner he kicks Obama’s as* out of office
the better. Turning this ship around is going to be a monumental task.
It’s great to see that so many SDA’ers get the BIG picture!
Most of the “hypocritical Liberalism”, failing economies, open borders, etcetera that we complain about here begins to become clear like a puzzle falling into place, once the bigger picture is understood.
We deal mainly with the useless idiots on the left, but also the few on the right, who have no idea that they are disposable pawns in the oldest game called civilization. It’s always been about a ruling class verses the slave class, and the ruling class wants their old world back.
knight you cannot call them usless idiots ..lemmi splain it to ya .
While we are smart enough to catch on to the uslefull idiots, as you call them.
I know who you mean the robot’s that are brainwashed by the left elites to do there bidding while they remain nameless and faceless ,yet are right in front of you like tides and george soros we go after tides while george soros goes on speaking tours we have a hard tiem linking them together and procicuting or charging them with anything …they arel ike a the black smoke from lost …right in front of you but yet untouchable you cannot seem to grab ahold of them or even contain them or follow them .
so they send out there minions , environmentalist’s the whole spectrom from the guy who love the country side and buy’s a prius to “do his part ” to the V for vendeta radicals .
The social justice league of their own who create so many victim groups through political lobbying that the true victims can only be one enemy the oppressive enemy the conservative,capitalist, white, christian,male.
so while you may be right on labelling the useful idiots for who they are the lefties are by no means weak , nor are they stupid , they are cunning , crass, and dangerous, look what they did in germany and north vietnam, so on and so forth , i don’t need to run down the list.
So yeah i get it but keep faith my friend people are fighting back and waking up o.k. spead the word when you have conversations speak loudly watch how people react AND THEY DO i do it at flames games , stamps games , at the malls , you name it , just simple conversations with my wife like why cd’s are so expensive ..that is a front for me making my points out loud , as an example. last year at a stamps game myself and three other gentlmen and there wices were al in a deep political conversation with one other guy and his wife by the end of the second half we showed them the light about how and why canada was a judeao christians country founded on conservative priciples and has been corrupted so bad since the early seventeies since truedeu ….it is simple but also fun you can make many allies this way as well networking militias lol. anyway i like doing it and i see some get annoyed but the majority will often offer either a correction to my points or add to it or back it up with there own expieriences or ideas …..beelivei t or not most people who object are union workers it is really funny that way !!!
paul in Calgary .
I agree wholeheartedly, my point about the useless idiots or “minions” as you put it, is that they believe that they are working towards their own ends, whatever those ideals happen to be. Whether it’s saving mother earth, or getting their tuition paid for. In almost cultish fervor, they believe that they will share in the power of globalization and its subsequent population subjugation.
This has been careful Social Engineering manipulation orchestrated by very bright people in very high places for a very long time.
Snowbunnie >
Your statement is bang on,
Too be clear with your sentence – “Distribution of wealth from the US and other prosperous nations to those who are not…”
The Third World nations are not receiving the wealth of the western world. It has been disappearing into the pockets of the world elites. That is why most western countries are essentially bankrupted into debt that can never be truly “repaid” to parties unknown, for monies’ they never existed in the first place.
The Third World is only there for resource exploitation. Third World immigration is a weapon used against the remaining western middle class wealth, and simply another means of creating “Order out of Chaos”. First they need to bring about chaos.
The Islamization of Europe along with their financial failures is only one step in this process. Outsourcing manufacturing for cheap third world labor and then importing cheap third world labor, all a part of the process.
Such large numbers dull the senses. Well, a reasonably paid Western European might earn 50,000 Euros a year. 180 billion Euros is enough to pay that salary for 3.6 million years
Southern Euro countries such as Spain, Portugal, Greece and Italy have citizens who pride themselves in tax avoidance. While I don’t like paying taxes and object to the growth of government that demand those revenues I do pay. Now that panic is setting in in Euroland a flight to German safety is taking place by those that have cash. Spain is now demanding that Spanish citizens declare their out of country bank accounts. In the mean time the Eurobank is printing money and monetizing the rescue fund used to stabalize Greece and the others such as Spain when needed. It is another form of taxation for a bailout of those that have shown no responsibility in the past.
If Canada contributes money to the Euro bailout fund then I will become one of those dodgers myself. As a taxpayer I have already contributed to their Libya adventure + Iraq + Afganistan + Syria(?). I guess I forgot Bosnia! As Europe continues its decline into 3rd worldism I detest their bleating.
@ ct at April 15, 2012 11:27 AM
“citizens who pride themselves in tax avoidance”
Not sure pride is the initial reason and doubt if we are much different in North America. When a tax is fair and affordable most people will pay without objecting as long as the money is seen to be spent wisely by those we entrust it to. When any government loses respect for “your” money and begins to squander it in frivolous fashion, or tax becomes unreasonable, people get angry and the seeds of avoidance are planted. A small example in my area is the sale of tobacco products and in one case, a very fine rye whiskey, all bypassing taxation and leaving the product at less than half price. I doubt if there is much pride in the purchase but probably self satisfaction in not being gauged by unfair tax. Another small example is movie piracy. Most people know it costs less than a dollar to make the DVD , yet the new release price touches $30. with tax. Do you blame them for copying when at $10. they probably would purchase it ? The BC carbon tax is another one that makes people angry. Being taxed on nothing does not make people happy. I could go on all day on wasted money coming out of “your” wallet to feed greed. The examples you stated are also valid for the European taxpayers and probably just as annoying. Tax avoidance has a time honored history and is universal. It can only be eliminated when government respects “your” money as much as their own. Have yet to see that government.
peterj@1:13pm;
No doubt that your many examples are valid. I guess the scale of ‘avoidance’ going on in Europe and the consequences are what grab my attention. In typical socialist fashion the Euros are pointing at everyone but themselves to pay the piper for the disaster they face. As the reality becomes more obvious the rats are fleeing the sinking ship.
In 2008/09 the Euros made concerted efforts to have the IMF involved in their bailout. In essence that meant the USA taxpayer. Obama lent lip service to that bailout but no cash to my knowledge. The Euro ship is sinking and like the Titanic it was said to be impossible. We will be very lucky if we all don’t get sucked under.
@ ct at April 15, 2012 7:28 PM
Agree 100 %. I think Europe as it stands today is toast. If Obama is re-elected the USA will be toast too.