Basically the EFSF, (European Financial Stability Facility) will give money to banks when they need it, simple as that.
Why would banks need money? Because they have made mistakes.
If you think it is a good idea or a mistake to give money to people who have made mistakes is a separate matter.
So why does giving money to banks steal wealth from people and specifically Europeans and specifically people using the Euro?
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As I have covered before money is labour and property in a from that is easy to trade. When the ECB and the national central banks around Europe print money they are not creating more labour, they are not making labour more efficient and they are not increasing property/resources.
So by printing money they are increasing the number of Euros that are chasing the same amount of labour/property. And because labour and property have not increased prices increase which steals people’s buying power.
It is impossible to increase the abundance of a commodity like money and not expect it to have effects throughout the economies of Europe. And the effects are that the Euro in people’s pocket will buy less.
It really is as simple as that. Of course the mainstream media throughout Europe is trying to spin it into something more complicated, something mysterious, something intelligible. Which it is not.
And who do they decide to give the money to? Which part of society will get the most benefit of these newly printed Euros? The banks who have made the mistakes.
If you have been running a responsible bank for the last 10 years I wonder how it feels to be having to compete with incompetent bankers and them being refinanced for effectively free.
Not only is the EFSF extremely questionable on a moral level it is also is a severe deterrent to high quality businessmen wanting to open well run banks as they will not be rewarded for doing so, and inf act they will be punished by governments.
The EFSF is not only robbing Europeans of high quality banking services it is also robbing them of their spending power which effects them today through their wages and in the future through devalued pensions.
Next time you hear of the EFSF and you have Euros in your pocket, remember that this is your government taking money from your pocket and giving it to incompetent bankers.
This is a short video giving examples of moral hazard which the EFSF creates.
httpvh://www.youtube.com/watch?v=RpRsaCo_TmI
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