Mike Shedlock

The question of the day (for which everyone should know the answer) is Can Government Lies Calm the Markets?

In spite of the fact most of us realize lies will not help, and most often makes matters worse, governments repeatedly resort to lies, platitudes, and wishful thinking.

Jean-Claude Juncker, Luxembourg PM and Head Euro-Zone Finance Minister admitted as such in his statement "When it becomes serious, you have to lie"

Things are clearly serious, so everyone should expect lies, and lies we have in spades.

MarketWatch reports G-7 seeks to calm market fears on Europe, banks

The finance ministers and central bankers of the Group of Seven richest industrial countries sought late Friday to calm market fears about Europe’s debt crisis.

A senior U.S. official told Dow Jones that the G-7 leaders spent most of their time behind closed doors dissecting Europe’s problems.

The group trumpeted the EU’s July 21 agreement to ease financial tensions, saying it would make the European Financial Stability Fund more flexible. At the same time, the euro-zone countries reaffirmed their “inflexible determination” to honor their sovereign debts and their commitments to sustainable fiscal policies and structural reforms.

Mike Shedlock

Mike Shedlock is a registered investment advisor representative for Sitka Pacific Capital Management.
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