Re: EU to Enforce Hard Border or KICK DUBLIN OUT of Single Market!
Originally Posted by
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The EU banks haven't recovered from 2008
Thanx to the usa they have: (from an article in dutch)
The neo-conservative ideology was shattered. The fantastic, always perfectly functioning market had failed! The banking world had completely misjudged the risks. Now it was up to the smitten government, that eternal brake on the miracle of expansive capitalism, to save the system from destruction.
Adam Tooze recently published a book about it: Crashed. How a Decade of Financial Crises Changed the World. The originality of Tooze lies in his largely favorable description of the effective performance in this emergency of the US Treasury Department and the Federal Reserve System chaired by Ben Bernanke, the successor of Greenspan. He contrasts that with the years of barely coordinated baffling in the eurozone.
Bernanke de facto changed the FED temporarily into the financial market of the entire North Atlantic financial-economic system. Vast amounts of liquidity, mainly consisting of short-term credits, were pumped into the system through various means. This credit was provided for more than half to foreign, mainly European banks, which had participated on a large scale in the US mortgage market.
In total, the US government provided $ 7 trillion in financial support and credits. The FED granted authorization to various central banks to provide unlimited dollars in their own national market. No publicity was given to this immense support operation. There was no democratic legitimacy. It is also questionable whether the American Congress would have given permission. However, the operation was coordinated with the incoming government of Barack Obama. Incidentally, all credits have been repaid and the FED has earned around 4 billion dollars on the entire operation.
The effective action of the American government meant a strengthening of the central position of the US in the international financial system and a firm underlining of the significance of the dollar as the only truly global currency. The US demonstrated that, although financially, they are the one indispensable nation.