Thursday, November 17, 2011

France and Germany dispute ECB's role

The Irish Times has a description of the growing disagreement between the two main limbs of the gangrenous common currency, linked here. The following quote comes from their report:

“I want to be very clear: our reading of the treaties is that the ECB does not have the ability to solve these problems,” she (Angela Merkel) said.
Her remarks put her at odds with Mr Kenny and, more significantly, French president Nicolas Sarkozy, who has been been her closest ally in the fight against the crisis.

The ECB now lies at the heart of the fudge which has always been the guiding principle of the EU project, which will now seems set to become the cause of all the deep and bitter disputes that are soon to be delivered upon us. Fights over money often become the most bitter, and the EU family have been spendthrifts on a truly massive scale!

As I quoted from Acting Man in a post last evening "In spite of the fact that the ECB has now advanced almost € 1 trillion in 'emergency liquidity' to euro area banks, i.e., almost an entire enlarged EFSF worth of money from thin air, the banks continue to flounder."

Where will the liability for this €I trillion of imaginery money eventually end, how will it be divided amongst the shareholders of the ECB when the euro disintegrates. Were the money properly accounted for, many triple a European Sovereigns would now no longer be so.

These are questions this blog has been posing for months if not years, they have never been addressed, let along answered. Incredibly Sir Mervyn King's defence yesterday of the ECB, seems to indicate he has not yet grasped the difference between the ECB and a normal central bank, with an army of enslaved taxpayers standing ever ready behind it to pay for the normal incompetencies and errors.. Let us hope this dreadful man has provided no pound sterling commitments to his ECB counterparts!

For french readers Le Figaro leads on the ECB linked here.

Labels: , ,


Post a Comment

<< Home