Credit demand, supply, and conditions: A tale of three crises

Well – the real economy supplied by credit was in the main a Grot economy – it chiefly involved the production 7 export of useless or at least over engineered luxury goods.
The west primarily due to its opiate addiction to cheap oil encouraged by the Saudi / Swiss connection has forgotten how to Build real goods & especially core capital.

To sustain this sham people will be destroyed as the car based economy slowly moves up the European food chain.
This desperate attempt to save mercantile Germanys & the cores recycled petro based exports via firewalling or more accuretly merely burning Greece , Ireland ,Iberia , Italy to continue this failed business model of providing Germany with cheap capital is very telling.
Consider this ……….fixed capital tale.
2005 Irish Buildings & construction : 33.405 Billion
2006 : 38.037 Billion
2007 : 36.582 Billion
Total : 108.024 Billion

If Germany spent 108 Billion on the very expensive EPR reactor how many could it build ?
Well at 7 billion a pop thats 15+ 1.6Mwe reactors – coal depletion problem mostly solved.

Irish Imported capital goods (half of this is vehicles)
2005 :8.31 Billion
2006 :7.99 Billion
2007 :9.16 Billion
Total : 25.46 billion
Enough to stick electricity cables above all urban Bus route in Germany I imagine.
Imagine the scale of the credit malinvestment in Iberia ?????

The Germans merely had a Reggie Perrin like moment back in the 50s era of cheap abundant oil but without the Humour and bad engineering.
http://www.youtube.com/watch?v=93bWZV3485I

Europe is a Failed entity – its time we move on from this mercantile debacle and concentrate on increasing redundancy & core capital in each indivdual state.

http://lubbockonline.com/business/2012-03-03/why-david-stockman-isnt-buying-it

“Q: Why are you so down on the U.S. economy?

A: It’s become super-saturated with debt.

Typically the private and public sectors would borrow $1.50 or $1.60 each year for every $1 of GDP growth. That was the golden constant. It had been at that ratio for 100 years save for some minor squiggles during the bottom of the Depression. By the time we got to the mid-’90s, we were borrowing $3 for every $1 of GDP growth. And by the time we got to the peak in 2006 or 2007, we were actually taking on $6 of new debt to grind out $1 of new GDP.

People were taking $25,000, $50,000 out of their home for the fourth refinancing. That’s what was keeping the economy going, creating jobs in restaurants, creating jobs in retail, creating jobs as gardeners, creating jobs as Pilates instructors that were not supportable with organic earnings and income.

It wasn’t sustainable. It wasn’t real consumption or real income. It was bubble economics.

So even the 1.6 percent (annual GDP growth in the past decade) is overstating what’s really going on in our economy.”