A well-informed and reliable source told EIR yesterday, that the European Financial Stabilization Facility (EFSF) in Luxembourg is presently working intensely to raise funds on the financial markets using the state guarantee, which according to him is legally questionable. The head of the EFSF, Klaus Regling, also is using the interest differential among countries, which would be cynical, to say the least.
The Euro, like the Dollar, is a debt-based currency printed up by the central bank and loaned to the people for use at interest. As long as larger pools of borrowers can be found, the Euro, like the Dollar, can perpetuate along, transferring the accumulating debt onto future generations. But when a generation is reached unable or unwilling to pay that accumulated debt, the whole pyramid collapses. which is what has happened here. The downfall of the push for a global economy is that the bankers created a global depression. More globalism will not repair the damage.