Sadly, because everything that we warned about in "There May Be Only Painful Ways Out Of The Crisis"
back in September of 2011, and everything that the depositors and
citizens of Cyprus had to live through, seems on the verge of going
continental. In a nutshell, and in Reuters' own words, "the
savings of the European Union's 500 million citizens could be used to
fund long-term investments to boost the economy and help plug the gap
left by banks since the financial crisis, an EU document says."
What is left unsaid is that the "usage" will be on a purely involuntary
basis, at the discretion of the "union", and can thus best be described
The source of this stunner is a document seen be Reuters, which
describes how the EU is looking for ways to "wean" the 28-country bloc
from its heavy reliance on bank financing and find other means of
funding small companies, infrastructure projects and other investment.
So as Europe finally admits that the ECB has failed to unclog its broken
monetary pipelines for the past five years - something we highlight
every month (most recently in No Waking From Draghi's Monetary Nightmare: Eurozone Credit Creation Tumbles To New All Time Low),
the commissions report finally admits that "the economic and financial
crisis has impaired the ability of the financial sector to channel funds
to the real economy, in particular long-term investment."
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