The ECB’s Modern Day Version of Fiscal Hanukkah

First, we need a little tutorial for those of you who are not familiar with the Story of Hanukkah.

Cliff notes:  The Maccabees defeated the evil Syrian king, and went to light the festive lamp in the temple.  There was only enough oil for one day, but miraculously, the lamp burned for 8 days.  Hence: the Festival of Lights.

Now we can tell the modern day financial story of Hanukkah:


The evil would-be-king, Ron Paul, wanted to oppress the worshipers of fiat money.   He tried to make the People bow down to golden idols.  If they would not bow down, he threatened to dismantle the Federal Reserve.    The leader of the Federal Reserve was a man named Ben Bernanke.   Bernanke fought against Ron Paul’s golden idols and the Army of Insolvent Banks by flooding the United States with liquidity.   He even helped provide global liquidity via currency swaps with his brothers – the European Central Bank and other foreign central banks.

After dousing the entire financial system with liquidity, Bernanke managed to stave off imminent disaster, placating the Army of Insolvent Banks for the time being.  However,  it seemed that there would have to be a Day of Reckoning eventually.  You see, Bernanke’s liquidity was short term in nature – he only provided emergency overnight loans.

Just when it seemed that the Temple of Fiat Money would crumble, the European Central Bank came to the rescue, and in a true miracle, provided liquidity that would last for an unimaginable three years

Thus, today, we celebrate the Festival of Free Money – where we rejoice in the glow of the  ECB’s miraculous multi-year support of the Army of Insolvent Banks, which will delay the true Day of Reckoning for at least three more years.

A miracle indeed.



Related:  the Modern Day Financial Story of Passover



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