The EU’s latest decision to back a far larger stability fund and to leverage it adds to the global debasement of money. Since 2008, numerous stimulus packages and QE1 and QE2 have seriously undermined the integrity of the dollar. In the past few weeks, both the Swiss National Bank and the Bank of England have introduced their own versions of quantitative easing, and now the EU is going down much the same path. In our view, if a EU bailout if actually possible, it will take between $2.5 and $3.5 trillion. If such an effort is not made, the European Monetary Union will implode. Sadly, if $3.5 trillion were pumped into the system to “stabilize” the crisis, things wouldn’t look much better. This is because the money would be used to prop up cascading bond prices and bail out banks, while the real part of the economy would be subjected to severe austerity. All this will do is turn a financial calamity into political turmoil, which will before long threaten the tradition of democracy itself.