12.6 AEP: S&P has no choice: Euroland risks bankruptcy on current policies

By John Galt
December 6, 2011 – 17:10 ET

Tonight's entry from Ambrose Evans-Pritchard via the U.K. Telegraph:

S&P has no choice: Euroland risks bankruptcy on current policies

Uh, S&P could have done this in 2008 or 2009 when it was first discovered that much of the European Union was a paper tiger and insolvent, but alas, beggars can't be choosers.

Three sentences from the article sum up his pro-Keynesian position which is as fatalistic as the current policies being pursued by the Union itself:

In other words, Europe has been told that the ECB's contractionary policies – if continued – will lead to downgrades. The agency is targeting the output gap.

The Europeans are entitled to ignore this as – in their view – the worst sort of New Keynesian and Anglo-Saxon muddled thinking. Fine, but you can hardly complain if you lose your AAAs from an Anglo-Saxon New Keynesian agency.

Take it on the chin, defy the world, and pursue your 1930s policies if you wish.

Get ready for the bloodbath created, started, and amplified by the insanity of the world's fiat money masters, the central banks of the earth who only wish to pillage the serfs one more time before the descent into a modern Dark Ages.