{"id":9371,"date":"2015-06-24T06:14:58","date_gmt":"2015-06-24T11:14:58","guid":{"rendered":"http:\/\/olduvai.ca\/?p=9371"},"modified":"2015-06-24T06:14:58","modified_gmt":"2015-06-24T11:14:58","slug":"the-money-is-just-sleeping-let-us-wake-it-up","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=9371","title":{"rendered":"The Money is Just Sleeping \u2026 Let us Wake it Up!"},"content":{"rendered":"

The Money is Just Sleeping \u2026 Let us Wake it Up!<\/a><\/h3>\n

J.C. Juncker Sets Out to \u201cWake Up Liquidity\u201d<\/strong><\/p>\n

In\u00a0a recent article<\/a>\u00a0on the never-ending Greek Kabuki theater, we have come across parts of an interview EU budget commissioner Kristalina Georgieva has given to AFP, in which she explains J.C. Juncker\u2019s cunning plans to \u201ckick-start\u201d the European economy by pumping \u20ac300 billion he doesn\u2019t have into infrastructure projects and other assorted white elephants (we have\u00a0previously discussed<\/a>\u00a0this\u00a0Stalinesque plan<\/a>, as well as what usually happens when even some of the \u201cbest stewards of EU funding\u201d are \u201cinvesting in in infrastructure\u201d \u2013 see\u00a0The EU\u2019s Ghost Airports<\/a>\u00a0for the ghastly details). The interview contained the following gem:<\/p>\n

\u201cThe Juncker plan is to wake up the liquidity sleeping in our financial system, to give courage to our money, to pump investment into the real economy,\u201d<\/em><\/strong>\u00a0Georgieva said.<\/p><\/blockquote>\n

\"Liquidity\"
\nThe always open spigot, spitting out what is apparently\u00a0valiumed<\/em>\u00a0money.<\/p>\n

So the idea is that the enormous mountain of money created by the ECB and depicted below is somehow \u201cjust sleeping\u201d and if only someone \u2013 ideally JC Juncker \u2013 manages to\u00a0wake it up<\/em>\u00a0and<\/em>\u00a0give it the necessary courage<\/em>to get wasted on projects no-one needs or wants, the economy will magically improve. Prosperity is practically around the corner! Riiiiight.<\/p>\n

\"euro<\/a>Europe\u2019s huge pile of ECB confetti \u2013 just sleeping! The total is the red line, the annualized rate of change the blue line. Yes, that red line is going parabolic, via ECB, click to enlarge.<\/p>\n

Apart from the problems with this plan we have already discussed, which consist mainly of the fact that governments cannot sensibly invest, because rational economic calculation is situated somewhere between totally alien and utterly impossible for them, there is another problem with this idea Juncker (and many others) apparently don\u2019t understand.<\/p>\n

 <\/p>\n

…click on the above link to read the rest of the article…<\/p>\n","protected":false},"excerpt":{"rendered":"

The Money is Just Sleeping \u2026 Let us Wake it Up! J.C. Juncker Sets Out to \u201cWake Up Liquidity\u201d In\u00a0a recent article\u00a0on the never-ending Greek Kabuki theater, we have come across parts of an interview EU budget commissioner Kristalina Georgieva has given to AFP, in which she explains J.C. Juncker\u2019s cunning plans to \u201ckick-start\u201d the […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[5728,246,279,281,284,427,6650,6601,487,6170],"class_list":["post-9371","post","type-post","status-publish","format-standard","hentry","category-economics","tag-acting-man","tag-economy","tag-eu","tag-europe","tag-european-union","tag-infrastructure","tag-jc-juncker","tag-jean-claude-juncker","tag-liquidity","tag-pater-tenebrarum"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/9371","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=9371"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/9371\/revisions"}],"predecessor-version":[{"id":9372,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/9371\/revisions\/9372"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9371"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9371"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9371"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}