February 2024
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Europe’s worthless, lying “leaders” have really cocked up big time

Not being an economist I may not have fully understood the disaster the useless, lying euroleaders are causing, but I think it goes something like this: 1. The PIGS (Portugal, Italy, Greece, Spain) are all well and truly bankrupt. 2. Merkel would never get away with making German taxpayers bail them out, so she has to disguise the bailout. 3. Using EU taxpayers’ money, the European Central Bank (ECB) gives a trillion or so to European banks at just 1% interest. The banks then use this to buy the PIGS’ bonds. This drives down the interest the PIGS have to pay and makes it look like they are not quite bankrupt. It also makes it look like European banks have increased their assets with lots of “solid” country bonds. 4. The one trillion runs out, but the PIGS still need to borrow lots more money. So the PIGS have to sell bonds on the open market. Because of the high risk of default, they have to pay high rates of interest. 5. Now that interest rates for PIGS’ bonds have gone up, the bonds with lower interest rates which the banks bought with taxpayers’ money become worth less. The banks then have to ‘mark to market’ – record the bonds on their balance sheet for the lower price they could sell them rather than the higher price they paid. 6. The end result is that the PIGS are still bankrupt, but now the banks’ balance sheets look much worse because all the government bonds bought with taxpayers’ money are worth less.

The whole sitation is a total cock-up, European taxpayers have lost hundreds of billions (though they don’t realise it yet) and Germany will still have to bail out the PIGS. Never in history have so many people been led by such a bunch of incompetent, lying blithering idiots.

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