interestrateripoff Posted February 1, 2011 Report Share Posted February 1, 2011 http://www.nytimes.com/2011/02/02/business/global/02euro.html?_r=1&ref=business Recent economic indicators are giving Jean-Claude Trichet, president of the European Central Bank, ever more reasons to look forward to his retirement in 10 months.Inflation in the euro zone is rising from the grave well before the E.C.B. is finished burying the European debt crisis. Consumer prices rose at an annual rate of 2.4 percent in January, according to European Union statistics released Monday, significantly above the E.C.B.’s target of about 2 percent. And therein lies the quandary. In theory, the central bank should be starting to think about raising its benchmark interest rate soon to cool down the euro-zone economy. But in practice, the E.C.B. cannot raise the benchmark rate from an all-time low of 1 percent without making life even more difficult than it already is for the so-called peripheral countries like Greece, Ireland and Spain. A rate increase would raise borrowing costs for the governments of those beleaguered countries even more. And it would add to the burden on millions of homeowners, particularly in Spain and Ireland, who have variable-rate mortgages and would face higher monthly payments. “It’s a very difficult situation, obviously,” said Jacques Cailloux, chief European economist at Royal Bank of Scotland. “There are a lot of worries in the market about whether increasing interest rates would work against peripheral countries.” More at the link. This is the problem all the worlds central banks are in. The junkie needed to go cold turkey, instead they gave everyone cheap heroin and compounded the problem. There is no pain free exit from this mess. Quote Link to post Share on other sites
ken_ichikawa Posted February 1, 2011 Report Share Posted February 1, 2011 http://www.nytimes.com/2011/02/02/business/global/02euro.html?_r=1&ref=business More at the link. This is the problem all the worlds central banks are in. The junkie needed to go cold turkey, instead they gave everyone cheap heroin and compounded the problem. There is no pain free exit from this mess. Guess which one they are going to choose yet again to get them out of this mess? Quote Link to post Share on other sites
interestrateripoff Posted February 1, 2011 Author Report Share Posted February 1, 2011 Guess which one they are going to choose yet again to get them out of this mess? If they are going to give out more free heroin, can I have some because this reality looks fooked to me. Quote Link to post Share on other sites
ken_ichikawa Posted February 1, 2011 Report Share Posted February 1, 2011 http://www.documentingreality.com/forum/f3/fast-how-heroin-galore-17540/ First post download the FLV and play it in irfan view, The fast show's Heroin Galore! Quote Link to post Share on other sites
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.