Cold Fusion in Brussels

According to an article a friend made me aware of, today is the day when Andrea Rossi will demonstrate his Energy Catalyzer (E-Cut), producing energy by cold fusion*. Will this be the final breakthrough to free energy as alluded to in a Dilbert cartoon, or just another of those many failures, not to say hoaxes?

If Rossi were successful, he would not be the first to achieve the multiplication of something essential to mankind. Yes, you are all familiar with the miracle of the loaves and fishes, but even then, Rossi will miss the second place with his free energy.

The honor of the silver medal goes to the European leaders as two nights earlier in Brussels, they miraculously created euros in excess using the leverage technique enlarging the original euro rescue parachute (Rettungsschirm) from 750 to 1000 billion. The ESFS (European System of Financial Supervision) will both operate and supervise the leverage, but who will be the judge? Hey, did somebody in the audience mumble: Separation of power?

Needless to say that these miracle euros are not free like Rossi's energy is supposed to be. If the leverage works, it will only prolong the agony of indebted mankind; if it does not, the fall into nowhere will be even more profound. It does not help that we in Germany, like in the States, have anchored a debt brake (Schuldenbremse) into our constitution. We Europeans were mesmerized watching the two Houses in Washington raising the US debt ceiling at the very last minute. Would you think Germany will not do alike when all the chips are down?

Hurra, we are safe! Merkel is using the Rettungsschirm in an unorthodox way.
Of all the Europeans in the boat, you may recognize Sarkozy.
Cartoon by Haitzinger (©Badische Zeitung)

Is there any escape? Well, an inherent solution is built into the leverage system called inflation. Creating more money means just that. One recent example is Switzerland. Since investors rallied the Swiss franc as an ersatz for gold - that had become too expensive - the exchange rate of the franc had nearly approached parity to the euro, a disaster for the Swiss economy based on export and tourism. At that moment, the Swiss government intervened, switching on the money press a measure bringing the franc to and keeping it at a minimum rate of 1.20 to the euro. Is printing more money the solution? Not for the German man in the street. We suffered inflation twice in the last century and are running from it like the devil runs from holy water.

*Note added: Apparently - subject to confirmation - Andrea achieved 480 compared to the planned 1000 kW. However, a 480 billion parachute compared to the 1000 billion promised would not be sufficient to sustain the euro.
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