Saturday, January 14, 2012

EU Policy Chiefs wrong on every aspect of S&P Downgrade.

First thing this morning I quoted the reasons S&P gave for the nine downgrades and continuing negative outlook for fourteen of the seventeen Euro Group countries. Such reasons I also heard repeated by broadcasters? Yet we are presented with the following fatuous statements:

Quoted by Reuters!

German Chancellor Angela Merkel said on Saturday."We are now challenged to implement the fiscal compact even quicker ... and to do it resolutely, not to try to soften it," she said at a meeting of conservatives in the northern city of Kiel.

"We will also work particularly to implement the permanent stability mechanism, the ESM, so soon as possible -- this is important regarding investor trust."

(EU) Economic Affairs Commissioner Olli Rehn quoted in The Economic Times
The commissioner Friday said he regretted the S&P's "inconsistent" decision which came at a time "when the euro area is taking decisive action in all fronts of its crisis response".

European Central Bank Governing Council member Ewald Nowotny quoted in Bloomberg.

.....ratings cuts are a “serious issue” for Europe because they “disturb” the positive development in recent weeks.

“I am concerned that this decision could upset the positive developments we’ve seen in Europe in the last few weeks,” Nowotny said in a live interview broadcast by Austrian state TV ORF. “That’s the most dangerous thing in my view.”

“The development on Europe’s capital markets has improved, that’s why it is so hard to understand why this is coming right now,” he said. “Of course there are many reasons to be unsatisfied with the progress in Europe, but what happened will make it even more difficult, because we had positive developments in recent time.”

These people seem totally divorced from all reality. Will the UN have to send in humanitarian aid and emergency medecines to Greece before the EU wakes up to the fact that they are creating a disaster. Not that things are much better when it comes to blind stupidity in the UK and USA when it comes to Low interest rates as supposed solutions for the economic malaise, as Douglas Carswell MP makes clear on his blog today, linked here.

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