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Trichet Faces Growing Criticism In Europe Debt Crisis

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http://www.nytimes.com/2010/05/21/business/global/21trichet.html?ref=business

For the first time in a long life of technocratic excellence, the president of the European Central Bank, Jean-Claude Trichet, finds both his judgment and his credibility in question.

The crisis of the euro and the panic of the markets have pushed Mr. Trichet, 67, who has run the bank since 2003, into bending the rules, compromising his principles and appearing to give way to political pressure from panicked national leaders. In doing so, he may have saved the euro but lost part of his reputation for probity.

“The E.C.B. lost its virginity,” said Marko Skreb, a former governor of the central bank in Croatia. “The last couple of days have clearly indicated that we live in a new world.”

In the last few weeks, as the bank has taken a central role in Europe’s debt crisis, Mr. Trichet has reversed himself on buying sovereign bonds from weak euro zone countries; agreed to keep accepting Greek bonds, however downgraded, as loan collateral; and opened himself up to charges that he has weakened the bank’s commitment to low inflation. He is being second-guessed from Athens to London and accused of badly misreading the markets.

During an interview in his office on the 35th floor of the bank headquarters here, Mr. Trichet, unfailingly courteous and urbane, showed no sign of being rattled by the criticism, though he was aware of it, and aware that his every word was parsed and second-guessed by a small army of analysts, economists and journalists.

“When you have the great honor to have enormous responsibility,” he said, “you have to accept that all of your decisions can be criticized.”

The euro’s continuing problems — and the bank’s — were evident again on Thursday, as markets in the United States, Europe and Asia continued to fall because of worries about whether the European debt crisis was really under control.

In the early hours of May 10, European leaders cobbled together a nearly $1 trillion deal meant to stun bond investors who, after Greece was driven to the brink of default, were hungrily eyeing attacks on Portugal and even Spain.

How dare people criticise unelected officials. I mean do they think we live in democracy.

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I'm amazed this guy still has his job. This is the guy who raised interest rates in the summer of 2008 when it was blatantly obvious that things were breaking down. Then later he backtracked and cut rates hard.

Now when it is blatantly obvious Europe needs massive printing and national bond buying from the ECB.. he is holding out refusing to intervene.

My gut feeling is Trichet doesn't really understand how the system works. Compare to Bernanke.. who is a genius. Imo America had a worse hand than Europe going into the crisis, but now is looking stronger.

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I'm amazed this guy still has his job. This is the guy who raised interest rates in the summer of 2008 when it was blatantly obvious that things were breaking down. Then later he backtracked and cut rates hard.

Now when it is blatantly obvious Europe needs massive printing and national bond buying from the ECB.. he is holding out refusing to intervene.

My gut feeling is Trichet doesn't really understand how the system works. Compare to Bernanke.. who is a genius. Imo America had a worse hand than Europe going into the crisis, but now is looking stronger.

no. Europe needs no more debt.

more debt is strength...give it a rest.

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I'm amazed this guy still has his job. This is the guy who raised interest rates in the summer of 2008 when it was blatantly obvious that things were breaking down.

Not really arguing with you but the other side of the coin: he raised interest rates when oil reached $147 per barrel. Seems it did the trick.

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no. Europe needs no more debt.

more debt is strength...give it a rest.

In our debt based monetary system more money is more debt. Debt has to grow forever to pay back existing debt + the interest owed.

The only other option is mass and cascading defaults. So what we see happening is nations trying to pay down debt on a net basis, causing the inevitable mass defaults.. then in desperation doing mega bailouts to stop the mass defaults.

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In our debt based monetary system more money is more debt. Debt has to grow forever to pay back existing debt + the interest owed.

The only other option is mass and cascading defaults. So what we see happening is nations trying to pay down debt on a net basis, causing the inevitable mass defaults.. then in desperation doing mega bailouts to stop the mass defaults.

yes, I see.

but to issue debt, monetise, you need SOMETHING to monetise.

monetising money is madness.

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In our debt based monetary system more money is more debt. Debt has to grow forever to pay back existing debt + the interest owed.

The only other option is mass and cascading defaults. So what we see happening is nations trying to pay down debt on a net basis, causing the inevitable mass defaults.. then in desperation doing mega bailouts to stop the mass defaults.

Exponential growth.

The logic is flawed.

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yes, I see.

but to issue debt, monetise, you need SOMETHING to monetise.

monetising money is madness.

Pretty much has to be sovereign debt at this point. Like corporations cannot go and take on debt to expand production when already customers cannot buy all the current production.

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Pretty much has to be sovereign debt at this point. Like corporations cannot go and take on debt to expand production when already customers cannot buy all the current production.

you have a circular argument.. does not compute.

customers...who pay taxes to government, who issue bonds that bankers buy.....with what? with what are they buying them...cant be cash, as they must already have it...

anyway, customers cant buy the production, either because...they dont want the stuff, cos they already have it or they cant afford it or they dont even need it.

so you say pay the factories to produce the stuff anyway by bailing them with cash, that comes from the same customers that didnt want the stuff in the first place...

in a nutshell, you are saying the customers are going to pay for the stuff they dont need, either voluntarily or by force of tax.

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Exponential growth.

The logic is flawed.

The system works well as long as the economy is growing exponentially.

I've heard people saying they wished we didn't consume so much, and the pressure to consume wasn't so high. I've said that might be, but the way our economy is designed we have to increase how much we consume forever or the system will break down.

For example if we cut consumption by 20%.. outright 20% of the population would be out of a job, government revenues would be down by 20%.

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The system works well as long as the economy is growing exponentially.

I've heard people saying they wished we didn't consume so much, and the pressure to consume wasn't so high. I've said that might be, but the way our economy is designed we have to increase how much we consume forever or the system will break down.

For example if we cut consumption by 20%.. outright 20% of the population would be out of a job, government revenues would be down by 20%.

dont you foresee an end then?

your comments say..we need to do x, but this is exponential, but we MUST do it or it will collapse.

yet you agree its exponential. wealth isnt produced exponentially. so you MUST agree that the act of keeping it going is futile timewasting.

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The system works well as long as the economy is growing exponentially.

I've heard people saying they wished we didn't consume so much, and the pressure to consume wasn't so high. I've said that might be, but the way our economy is designed we have to increase how much we consume forever or the system will break down.

For example if we cut consumption by 20%.. outright 20% of the population would be out of a job, government revenues would be down by 20%.

82470.jpg

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I'm amazed this guy still has his job. This is the guy who raised interest rates in the summer of 2008 when it was blatantly obvious that things were breaking down. Then later he backtracked and cut rates hard.

Now when it is blatantly obvious Europe needs massive printing and national bond buying from the ECB.. he is holding out refusing to intervene.

My gut feeling is Trichet doesn't really understand how the system works. Compare to Bernanke.. who is a genius. Imo America had a worse hand than Europe going into the crisis, but now is looking stronger.

:lol:

he is just a quicker thief

not for much longer though

the market will win

link

Public servants and their central bank allies are in a struggle between truth and

fiction. The truth being that they are Insolvent; the fiction being that they are NOT.

Hardy har har. (Thank you www.zerohedge.com for the wonderful quotes). Euro

zone public servants are decrying ratings agencies which can no longer present

POLITICALLY correct and PRACTICALLY incorrect ratings.

“In some ways it’s a battle of the politicians against the markets. That’s how I do

see it. But I’m determined to win this battle” ‐‐Angela Merkel

:lol: Edited by lowrentyieldmakessense(honest!)

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in a nutshell, you are saying the customers are going to pay for the stuff they dont need, either voluntarily or by force of tax.

Yep. It is either that or redesign society so that people can still have a job and income to live on, without the ever growing consumption driving the economy.

For example the used sites online have been such a boom for recycling and reusing old things, like kayaks. But it basically means the people whose job it is making and selling kayaks are soon on the unemployment line.

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Yep. It is either that or redesign society so that people can still have a job and income to live on, without the ever growing consumption driving the economy.

For example the used sites online have been such a boom for recycling and reusing old things, like kayaks. But it basically means the people whose job it is making and selling kayaks are soon on the unemployment line.

again, the point being that the kayak maker might be tommorrows warp drive installer.

things change.

In your exponentional world, we'd still be fighting over cave space. except that then, all they had to contend with was reality.

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  • 259 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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