Thursday, July 07, 2011

Trichet's Machiavellian Mendacity at the ECB!

I watched the press conference from the head of the ECB this afternoon. What a truly awesome example of buck-passing, evasion and smug self-satisfaction it truly turned out to be.

In summary, interest rates were raised by another one quarter of one per cent for the Euro Zone and collateral rules for Portugal were suspended.

 Apart from that, the theme was that all the present woes of the countries in the Eurozone were the responsibility of Governments. In the case of the rioting Greeks and whether the policies being pushed by the ECB were in the end enforceable, well that was a problem for the appropriate authorites in that particular country, we presume Trichet here referred to the police, or perhaps eventually the army.

No recognition of the departure from the rules by his non-standard procedures; default or effective default was just not to be contemplated; the rating agencies had flaws (wait for this absolute cracker) resulting from their small oligolopistic structures!

Boasting again and again that the 340 million people of the Eurozone  maintained confidence in a Central Bank that had delivered 12 years of price stability, it seemed everything in Trichet's small world nothing, anywhere could be improved other than by the several ongoing works which he admitted were still in progress.

Towards the end a question was put by a representative of the IHT /NYT I look forward to reading his account tomorrow!

Pontius Pilate could not have done better. After watching these regular ECB scenes down the years, I find it is me who must ask himself "What is truth"?

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