interestrateripoff Posted July 3, 2008 Share Posted July 3, 2008 http://blogs.telegraph.co.uk/ambrose_evans...ld_over_a_cliff Sadly, we are witnessing the sort of strategic errors that turned the recession of 1930 into a global catastrophe.The European Central Bank is now hell-bent on a course of action that will have a knock-on effect across the world and risk a dangerous implosion of the credit system. The ECB's Jean-Claude Trichet told Die Zeit today that "there is a risk of inflation exploding." Let me put it differently: there is a grave risk of social and political disorder "exploding" if the logic of his argument is followed to its grim conclusion, that is to say if the ECB charges ahead with a string of rate rises through the autumn after its near certain move to 4.25 per cent on Thursday. The ECB mantra is that Europe and the world is on the cusp of a wage-price spiral along the lines of the 1970s. This directly contradicts Ben Bernanke at the Fed, who insists -- correctly -- that today's conditions are not remotely like the 1970s. (Perhaps this is uncivil, but I might add that Bernanke is one of the greatest economists of our age. Trichet studied political administration at ENA. He is a fine and honourable man, but he is a politician, not an economic historian) By taking this militant 1970s line, he is in effect kicking Bernanke in the teeth. Or put another way, the ECB is trying to pressure America into a tighter monetary stance. Regrettably, this has in part succeeded. The Fed badly needs to cut rates further -- probably to 1per cent. It cannot do so because the ECB keeps threatening to pull the plug on the dollar. This is madness. It is the mirror image of the early 1930s, when the Federal Reserve (cowed by the Chicago liquidationists) precipitated the collapse of 4,000 banks, and transmitted their fervour to rest of the world through the Gold Standard. This time there is no Gold Standard. But the globalised capital and currency markets -- egged on by Trichet -- are playing much the same role. I thought we had already gone off the cliff??? Personally I don't think Bernanke is one of the greatest economists of our time, this crisis need thinking outside brown box and Bernanke hasn't done that. This is nothing like the 70s nor is it like the 30s, this is new, this is mass debt. If their is anything left when this has run it's course economic historians won't look too kindly on any of the current idiots we call central bankers or should there be a w in it somewhere. Quote Link to comment Share on other sites More sharing options...
thecrashingisles Posted July 3, 2008 Share Posted July 3, 2008 http://blogs.telegraph.co.uk/ambrose_evans...ld_over_a_cliff Evans Pritchard has lost the plot. Quote Link to comment Share on other sites More sharing options...
Patfig Posted July 3, 2008 Share Posted July 3, 2008 Buddy can you lend me a dime. Quote Link to comment Share on other sites More sharing options...
macfarlan Posted July 3, 2008 Share Posted July 3, 2008 (edited) "Sadly, we are witnessing the sort of strategic errors that turned the recession of 1930 into a global catastrophe." - PritchardI thought we had already gone off the cliff??? Snip This is nothing like the 70s nor is it like the 30s, this is new, this is mass debt. If their is anything left when this has run it's course economic historians won't look too kindly on any of the current idiots we call central bankers or should there be a w in it somewhere. There really is a lot of bad news out there, and presumably a lot of plots have been and will continue to be lost. Edited July 3, 2008 by macfarlan Quote Link to comment Share on other sites More sharing options...
yawnIHateSundays Posted July 3, 2008 Share Posted July 3, 2008 This is just normal Telegraph anti-EU banter. Bernanke one of the greatest economists of our age? Pull the other one. Quote Link to comment Share on other sites More sharing options...
Agentimmo Posted July 3, 2008 Share Posted July 3, 2008 The Torygraph siding with the US in an anti-EU rant. Incroyable The Fed and Bush have been kicking everyone else in the teeth for the last few years with their economic policies and their trashing of the dollar. Now the chickens are coming home to roost and they don't like it. The UK will feel the pain as well as our politicians and businesses have followed the US party line. The EU and ECB will try all they can to stop rampant inflation in the Euro zone. OK, they may fail but at least they will have tried. Unlike the US and Ben who avoided biting the bullet and decided to cut , cut , cut rates and pump even more money into an already failed system. Quote Link to comment Share on other sites More sharing options...
bobthe~ Posted July 3, 2008 Share Posted July 3, 2008 This is just normal Telegraph anti-EU banter. Bernanke one of the greatest economists of our age? Pull the other one. Absolutely. Change the record AEP. Quote Link to comment Share on other sites More sharing options...
Agentimmo Posted July 3, 2008 Share Posted July 3, 2008 UK rates are higher than either the ECB's or the Fed's. Yep, I know. I made reference to this in the other thread re. the ECB hike. What gets me is that these type of stories search for a bogeyman rather than name and shame the real culprits. These same self people tell us that Ireland, France, Italy etc will crash and burn with an IR at 4% but seem to think the UK "might" avoid the worst of the storm due to UK Plc's great strategy and planning....but are sitting with rates effectively at 6% + There's a lot of denial going on at the moment. What's the next stage in the cycle ? Quote Link to comment Share on other sites More sharing options...
Guest Winnie Posted July 3, 2008 Share Posted July 3, 2008 Absolutely.Change the record AEP. Maybe Paulson swung by some journos on his trip to London - he was on the Today programme with Darling as was Liam Halligan (later) who said Darling balmed inflation on anyone but Labour and Paulson did not mention inflation at all. Halligan basically put the boot in beautifully. He made a fantastic indictment on banking salaries being basically a central trigger for the economic catastrphe we find ourselves in. AEP - it is like looking at a plate and working out what you can and can't eat. Quote Link to comment Share on other sites More sharing options...
tinecu Posted July 3, 2008 Share Posted July 3, 2008 Evans Pritchard has lost the plot. Completely! Quote Link to comment Share on other sites More sharing options...
davidg Posted July 3, 2008 Share Posted July 3, 2008 This is just normal Telegraph anti-EU banter. Bernanke one of the greatest economists of our age? Pull the other one. Nor is Trichet a "fine and honourable man", he's a dodgy geezer who was involved in the Credit Lyonnais banking scandal. Still he does seem to have gone native in Frankfurt much to Sarkozy's annoyance. Quote Link to comment Share on other sites More sharing options...
Agentimmo Posted July 3, 2008 Share Posted July 3, 2008 Nor is Trichet a "fine and honourable man", he's a dodgy geezer who was involved in the Credit Lyonnais banking scandal. Still he does seem to have gone native in Frankfurt much to Sarkozy's annoyance. Agree with that - not for nothing his name sounds like "Cheat" in French the guy was appointed as a political patsy but seems to have decided to listen to his economics team and shun the politicians. maybe his experience at CL taught him something after all? ie. never trust a politician................... Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted July 3, 2008 Author Share Posted July 3, 2008 Don't trust anyone, even a central banker. Quote Link to comment Share on other sites More sharing options...
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