Extension to

Friedrich Dominicus — Wed, 09 Nov 2011 08:36:00 GMT

my blog entry a few days ago, about the sustainability of the ESFS.

Fact 1) the "auctions" were bad. And the ESFS has to offer much more interest then Germany bonds alone (guess how many would "back" up this bonds)

Fact 2) neither the Chinese nor the Japanes, nor the Russion are willing to buy ESFS bonds

Fact 3) hardly and private held bank "invests" in this bonds also the only ones taking some of the bonds will probably be government controlled banks.

Just imagine the last auction was just over 3 billions now how will they get the leverage on 1 trillion?

I'm not afraid but sure, that ESFS III can be judged a big failure. Well for liberals and libertarians this can't be a suprise, but even for normal people this is good news. It means there is some natural limit on the manipulations of markets and this supports my other entry: http://mises.org/Community/blogs/fdominicus/archive/2011/10/21/in-the-long-run-markets-will-prevail.aspx

I'm still as sure that we did not have seen the end of the interventions. The deldefs world-wide will try to find another way of prolonging their "dicatorship" and I'm sure everyone will have to suffer under this decisions. But in the end they will end on the dungheap of history. A new round will start but then I'm afraid again. The spongers will come back. And the honest again will suffer. Freedom is just a seven letter word for them, they have absolutely no bonds with it....

F Dominicus Blog : lies, Extension, ESFS, deledefs

Extension to