THE DECLINE OF THE WEST
An objective reading of the market crisis brought about by Analyst Carlotta Scozzari. To paraphrase the Static of Verses by Ungaretti, “Dead leaves waiting for the inevitable fall” within the financial markets, abandoned by the unnatural pumping of liquidity by major central banks, are non-Issues on which to develop any investment or speculation as the real economy, as there always appears to be more. In a scene from the end of the Roman Empire which sees the West arriving at the conclusion, with America doped by foolish speeches by the Central Bankers, as well as being battered by the global crisis that is triggered by the banks own business as well as sales of their products. While on the on the other hand, the real economy continues to share due to the lack of bank credit to companies, and the latest demand towards this. But without any “New Deal” they will not start again. The “Cat Keynesian” will continue to bite its tail if they banks do not lend money to companies, companies will not work, and if companies don’t work they can’t maintain or create employment. If there is employment, consumer confidence grows, without it there is no need for supplies let alone to be able to apply for business. The Cat Keynesian…
There is a need for great men that are open minded and great views, who love their homeland and a strong government that requires banks to lend money to companies rather than being involved with speculation. Is a new Roosevelt the answer, with an openness and courage? The governments of the last 20 years have always saved the banks from any crisis, without ever saving businesses and people. Or will it be yet another conflict of interest? However, one wonders who are elected by and ultimately work for the same government? The answer to you…
Here is the article by Carlotta Scozzari:
The decline of the West – All of the liquidity of the central banks has been frozen by a sick body – in theabsence of structural measures and by the separation between the real economy and finance has worsened the crisis.
“We know – according to a study by the Invest Bank – which only the intervention of the central banks liquidity has blocked the implosion of global finances, but there has been no repair or paradigm shift has been done. It has only been frozen by a sick body, taking time in the hopes of finding a miracle cure.”
Carlotta Scozzari for Dagospia
latest study of Invest Bank, edited by Gabriele Roghi, financial markets begins with one of the most famous poems by Giuseppe Ungaretti, “Soldiers”, “you are like autumn leaves on trees”. Is the Invest Bank uncomfortable with nothing less than the poet born in Alexandria, Egypt comparing the instability and uncertainty of the situation in which they finds themselves as soldiers in the financial markets. “In our analysis-explains Roghi – we are put in the role of soldiers of financial markets that are in excellent health, yet armed, but always with the uncertainty about what will their future holds in store, it is still precarious”.
And in this context of extreme uncertainty what role did the central banks such as the U.S. Federal Reserve and the Bank of England have, to have flooded the markets with liquidity in order to stimulate the economic recovery? To Invest Bank it is similar as if they had attempted to resuscitate a dead body.
THE FINANCIAL CRISIS IN GREECE – RISKING BANKRUPTCY AND DEFAULT
“The unconventional monetary policies adopted by the central banks of the developed countries – saysRoghi – can be likened to an attempt to freeze a situation due to degeneration of the Western financial system that started in 2007 with the implosion of the debt-based system, massive speculation on derivatives and leverage to prevent the collapse. No form of structural intervention was maintained, or carried out, and it only bought time prior to the inevitable conclusion of the process “.
The lack of structural interventions, which could actually impact on the recovery, according to the experts of Invest Bank, led to dissociation between the real and financial economy. Therefore, in this context, we are witnessing the release of “glacial” yet macroeconomic data, while “the financial markets are calm, you will find ideas for further growth by improving economic indices of 0.1% compared to the previous year”, then pretty much nothing.
But we know – adds Roghi – that this reality is so artificial: yet only, to date, the intervention of centralbanks ‘ liquidity has blocked the implosion of global finance, but, it should be remembered that no repairs or paradigm exchange has been done. It is only a sick frozen body, taking its time in the hopes of finding a miracle cure that brings it back to life.
Therefore, it is apparent that, in the absence of structural interventions and or measures on the real economy, uncertainty continues to reign supreme. Therefore, questions remain open in the early part of 2014, and have yet to be addressed and be answered. And that Invest Bank continues to ask: “Will there ever be a thaw? We should be pleased to remain trapped in the artificial ice produced by central bankers to save the financial system, and be unwitting accomplices of those responsible for our immobility (but offset by spreads going up and down?). Or should we seek to make nature of its course, by providing nourishment from what it was, but is no longer necessary to provide the necessary humus to sprout forth a new system that is stronger, healthy and fair? “. Perhaps the solution is the second option suggested by Invest Bank.