Why the Euopean countries want to join the EU.

A stunner in the JCT press conference, who just announced that the ECB is willing to accept any junk that comes its way. Specifically he said that the ECB has decided to suspend a rating requirement for Portuguese collateral, and that the ECB will shortly issue a press release on the matter. Obviously the bank is now making stuff up as it comes alone. He also added that the suspension will be maintained until further notice. Expect this move to affect Italian, SPanish and all other insolvent country debt shortly as it becomes all too clear that the ECB will do everything in its power to give out cash against insolvent paper. And now you know what Europe's QE looks like. (Zero Hedge)

This is the reason every country wants to become member of the European Union.

They can borrow at close to 0% interest rates from the ECB.

Finance all their wasteful projects, knowing full well the ECB will bail them out.

The give their defaulted bonds to the ECB (they did not make the right investments to generate the wealth to pay the interest of the bonds).

That done, start an austerity program.

And when everybody forgot what really happened, start all over again.

Is it crazy? Yes. And this is the reason Europe will fail miserably.

George Dagnino, PhD
Editor, The Peter Dag Portfolio. Since 1977
2009 Market Timer of the Year by Timer Digest

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