Thursday, 20 January 2011

Telling The Truth About Lying

Recently, I've written a few posts about why Capitalism needs to lie to the majority of citizens. On a day when it was reported that Spain's debt ridden Government would be seeking more than 30 billion Euros, to refinance its struggling Cajas, the small regional banks who finance the Spanish property market, and their were rumours that the EFSF, the European bail-out fund, was to issue Bonds in its own name to raise money, and was also to buy the Bonds of struggling peripheral economies, that point was made cystal clear by a contributor to CNBC's European Closing Bell.

Ralph Silva, of Tower Group said that it would benecessary to undertake new stress tests on the European Banks.
If these tests were done properly, he said, then 25% of Banks tested would fail. It was necessary to get a proper picture, in order to know what was needed to sort things out. However, he said openly, it was actually necessary to lie about the results of those tests, for now, because if the truth of how bad the situation is was made general knowledge then, he said, "There was no future"!

Today, CNBC also provided information about the more hidden consequences of the crisis. Ireland is losing One thousand people a week to emigration as a result of the crisis. Until, recently thousands of Irish people and others were flocking to Ireland's Celtic Tiger economy. Now it is transformed from a Tiger to a Pig economy.

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