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Peter Hun

Ecb Chief Calls For Global Tightening

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ECB chief calls for global tightening

By Chris Giles in London

Published: July 22 2010 18:47 | Last updated: July 22 2010 18:47

Public spending cuts and tax increases should be imposed immediately across the industrialised world as evidence of a healthy European recovery mounts, according to Jean-Claude Trichet, president of the European Central Bank.

In a strident article for the Financial Times, Mr Trichet argues that policymakers who want to prolong the stimulus are mistaken and that cutting borrowing would have “very limited” effects on growth.

The view from Europe’s senior economic policymaker contrasts with continued US demands for fiscal tightening to be delayed at least until 2011 and suggests there is still little agreement over the best way to foster a strong global recovery from the financial and economic crisis of the past two years.

“We have to avoid an asymmetry between bold, if justified, loosening and unduly hesitant retrenchment,” Mr Trichet says in his article.

Firing a shot at the US administration and the International Monetary Fund, Mr Trichet criticises last year’s global push for budgetary stimulus.

“With the benefit of hindsight, we see how unfortunate was the oversimplified message of fiscal stimulus given to all industrial economies under the motto: ‘stimulate’, ‘activate’, ‘spend’.”

The US view in favour of continued short-term stimulus was repeated by Ben Bernanke, chairman of the Federal Reserve, on Thursday. Giving evidence to Congress, Mr Bernanke supported fiscal efforts to boost demand before the US embarked on a “well-controlled” longer-term deficit reduction plan.

Continued...

http://www.ft.com/cms/s/0/b2c49986-95b5-11df-b5ad-00144feab49a.html?ftcamp=rss

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Euro will be saved by China, for deals with Germany...............USA now a busted flush..................Goldman Sacs is already getting forced out of main land Europe as are the other whores of Wall st.............The Anglo-saxion fraud backed banking system will get replaced..........

Mike

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Euro will be saved by China, for deals with Germany...............USA now a busted flush..................Goldman Sacs is already getting forced out of main land Europe as are the other whores of Wall st.............The Anglo-saxion fraud backed banking system will get replaced..........

Mike

Cannot come too soon, although already probably too late after the scale of destruction it has already perpetrated on the UK.

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  • 258 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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