With their regulatory repression of banks, the Basel Committee and the Financial Stability Board are slaying our economies.

“Banks if you lend to a risky small business or an entrepreneur (broccoli) we will force you to hold more equity (spinach) but, if you lend to our dear safe mother government (ice-cream), we will reward you by allowing you to hold much less equity (chocolate-cake).”

The economies of Europe, of the whole Western world, are unwittingly being submitted to euthanasia by bank regulators too dumb (hopefully) to understand what they are doing.

Our economies, dieting solely on carbs, are being immobilized by growing obesity (as evidenced for instance by  negative interest rates) and any of these days they will suffer a heart-attack.