by The Daily Bell:
‘Armageddon’ to Happen Despite EU Deal … Jim Rogers, Chairman of Rogers Holdings says the latest euro zone deal does nothing to help solve the region’s biggest problem, which is its high debt levels. Even as markets cheered the agreement by European leaders to allow the direct use of the bloc’s bailout funds to recapitalize struggling banks, well-known investor Jim Rogers told CNBC the move does nothing to help solve the region’s biggest problem, which is its high debt levels. – YahooFinance
Dominant Social Theme: Everything will be okay with this deal in place.
Free-Market Analysis: Jim Rogers’s analysis of the “deal” that has been reached by top EU “policymakers” (excerpted above) is probably accurate. Apparently, EU leaders will now be able to lend to banks without further degrading their various countries’ credit status.
But why filling up bank coffers with paper money is seen as a triumph of some sort is difficult to ascertain, as Rogers astutely notes. The real problem faced by the EU is that member states spend too much money and that they cannot devalue their currencies to pay off debts and “spread the pain.” Here’s more from the article: