My father was a lawyer. I studied law. When you do, you are not taught how to OBEY the law, but really how to GET AROUND IT without violating the “letter of the law”. The reason I am being hard on lawyers here is simple. They are trained in the law and assume if you pass a law, then everyone must comply. They need to walk across the hall and go into Psychology 101.
IIf they were traders, the first thing you learn after the first few losses – buy the rumor and sell the news. For those who do not get what that really means, let me explain. If I am standing in front of you and tell you I am going to punch you in the face, would you just stand there or at least duck if not fight back? In other words, people generally will respond in ANTICIPATION of an event regardless of the true outcome of whether or not it even takes place. Government does not understand this. They think they can say they will now do bail-ins and take everyone’s money when a bank fails as they did in Cyprus and you will just stand there and do absolutely nothing. They can write a law to prohibit prostitution, abortion, or bribery. However, that will never eliminate the practice.
Germans have begun to save less. They are already anticipating that the punch is coming. Government cannot grasp for one second that laws mean nothing not just for their friends, but for everyone. We are looking at DEFLATION as people hoard money, spend less, and prepare for the insanity that these politicians are creating. This results in reducing market LIQUIDITY as well as the reduction in the VELOCITY of money. This is how DEFLATION is created within the destructive forces that cause the economy to crumble to dust. Politicians are destroying society with incredible efficiency. They are extinguishing our very future, which is why unemployment among the youth is over 60%. They cannot see what they are doing for it is all about them retaining power – not about doing a good job.