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Killing the Debt-Crisis 'Godzilla'

Godzilla is now rampaging across the economies of the West out of control, according to the corporate media. How did this happen? Are the bankers and politicians to blame? No, it was the island nation's rescue that (supposedly) set the precedent. The debt crisis forced this extreme measure. Godzilla created itself.

Note the differences, however, between the low-budget horror movies of the 1950's and our real-life Godzilla movie. At least in the theater the army of Japan makes a valiant-but-futile effort to fight the monster. With our economic Godzilla now terrorizing Europe, what do we see "our army" of the bankers and politicians doing? Shrugging their shoulders and speculating about "who will be the next victim."

Maybe I'm being unfair. The bankers and politicians tell us they are "doing something" to battle the debt crisis. Let's take a closer look at their efforts to "fight" the crisis.

The bankers and politicians tell us they are "bailing out" the debtors. Sounds good since by definition the only way you can "bail out" an insolvent debtor is by either giving the debtor money or forgiving some/all of the debts. Except that's not what they are doing.

What they are actually doing is lending more money to already insolvent banks and/or sovereign governments. I have previously characterized this as "putting out the fire with gasoline." This is incorrect.

What the banksters and politicians are doing is adding new debt to the old debt of already insolvent entities. They are supposedly attempting to put out the fire with more fire.

So the bankers and politicians are feeding Godzilla steroids and then getting the media to absolve them of any responsibility when Godzilla gets hungry.

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