A closer fiscal union needs to be arranged before the ECB is granted more powers.

Bank secrecy masks a world of crime and destruction. Banks seem willing to exploit the loopholes found in tax havens and it's costing the British taxpayer dear" (source: the guardian)…If anybody has actually read any of my postings and comments, which is not at all certain since I do not read other blogs, posts and comments, they will have seen how I have been advocating the end of Tax Havens and fancy avoidance schemes for years. I have been saying we are in a world war: the 1% against the 99%. It was in my report sent to Governments in 2009: A MORAL PATH TO RECOVERY, which can still be read on my blog's archived posts, I maintain that Wealth Management, offered by the big banks, is the code word for tax evasion on a massive scale. It has grown into a major industry of the rich for the rich, by the rich actually sponsored by Governments which have allowed the privileged elite to avoid paying taxes. And we wonder why our countries are in debt and the economies stagnating. The banks have been exposed as virtually corrupt, fraudulent, criminal organizations and yet not one single banker has been brought to justice. The 13 trillion dollars hidden away as calculated by the Tax Justice Network simply must be recovered if Europe and America are to survive as democracies. The 99% just cannot support any more austerity measures, cut backs and increased taxes. That is the simple choice we face. The 1% know they cannot hold out for ever but they seem too shortsighted to understand that if the majority sinks they will go down too....Well, as long as we allow banks to hold a license to create money as debt, there will be no solution to this or any of the other corrupt activities of banks. Take away their power to do something and they will buy it back with the stroke of a pen. Banks are masters of our universe - but ONLY because we allow them to create 97% of our money supply when they extend loans. Until we restore the utility of money to a public accountable body in the national interest the bankers (in collusion with the political power they can buy so easily) will do as they please. And so the ongoing financial analysis goes on The EU elites, Barasso and Rumpy Pumpy included, will never give up on their giant corrupt “ponzi” scheme, their mega salaries and mind blowing pensions ; one way or the other the euro fall will be one of this biggest failure in modern history. It will end; when all the people from the austerity ridden countries rise up and topple their Governments. The EU will then collapse like a

pack of cards. Good riddance, can't wait for the day! And so this ongoing financial analysis goes on! Stimulus, austerity or a combination of both? I can't see any of the above scenarios working. Austerity and the “Western Engine of the world economy” (Germany) spirals into decline, taking the BRICS with it. Use “stimulus” and money printing and we end up like Zimbabwe. There's no magical growth on the horizon to pull us out of this spiral, at least nowhere near enough. Kicking the can ever further down the road won't work forever. One could save a lot of time and effort and just tell us we're all in deep water. One day the world will move on, but there will be a very different political and economic landscape. A New World Order: perhaps?? I think after a couple of years of frustrated viewing we are starting to see the 'markets' (whoever the people are that make up the “market” they seem to be extremely gullible). FINALLY, cottoning on to the fact that the pantry is bare and there is no solution to the Euro that doesn't involve the end of the Euro. As the saying goes "you can't fool all of the people all of the time"; well the time of fooling everyone except themselves seems to be running out for the EU elite and they are going to be eating humble pie sooner now I think, rather than later. Mind you, they do have a remarkable capacity for dragging this out while they feather their own nests, but we do seem to be getting close to the end game, finally. More verbiage, no real action - IMF calls on ECB to act The International Monetary Fund is pleading with the European Central Bank to do more to fix the eurozone crisis. In a report released at 2pm, the IMF said the ECB could, and should, do more to prevent the euro unraveling, arguing: The ECB can provide further defenses against an escalation of the crisis. Its recommendations included : • considering further interest rate cuts • a "sizeable" quantitative easing package, to stimulate the eurozone economy • giving the ECB full 'lender of last resort' powers • restarting its Securities Markets Program (to buy up peripheral sovereign debt) Suggestions 2, 3 and 4 are unlikely to be welcomed by stronger members of the eurozone (think Germany, Austria, Finland...) who could also fear that lower interest rates would drive inflation up.

The IMF, though (which expects the eurozone to contract by 0.3% this year) is again insisting that the ECB must do more: These could include policies to support demand in the short run and fend off downside risks to inflation, as well as measures to ensure that monetary transmission, currently impaired by financial stress in some countries. There are problems with the IMF's suggestions, though. QE would probably drag down the yields on safer bonds (awkward, when some are in negative territory already), while Germany is wedded to the idea that closer fiscal union needs to be arranged before the ECB is granted more powers.
Date: July 22.2012

Mircea Halaciuga, Esq. 004.0724.58.1078 PROXEMIS - Managementul Riscurilor