The European Tribune is a forum for thoughtful dialogue of European and international issues. You are invited to post comments and your own articles.
Please REGISTER to post.
Oh, and you want to withdraw rediscount facilities from all banks that assist in speculative attacks against your currency. You can't attack a currency unless you can short it, and you can't short it unless its central bank is being a sucker.
Austerity can only be implemented in the shadow of a concentration camp.
While everyone is pretending that these investor attacks on sovereign political entities which we know as nation states are somehow the fault of the nation states themselves it's impossible to deal with the political reality of what's actually happening - which is that a gang of thugs with baseball bats is kicking in the windows of democracy.
This is an extended economic Kristallnacht. It's soft violence-by-spreadsheet rather than hard violence with a fist to the face. But it's still criminal violence, with immensely destructive consequences - and not the genteel debate about financial niceties that it pretends to be.
Here's a useful graph of UK insolvencies. (The downtick last year was the result of new legislation which created a simplified pseudo-bankruptcy process for certain debtors.)
Considering that Osborne's plan seems to be to move public debt to private households, the next few years aren't going to be a happy experience for many people.
And I should learn to proofread better.
And it's not quite true that you can't short a currency unless the CB is being a sucker. The CB is just the most common sucker in a Soros attack, but any entity that has domestic currency lying around in large quantities can be the sucker.
Also, if your CB is not committing to defend a lower bound, it should be brokering currency swaps between foreign central banks and domestic firms that are considered to be of strategic importance and require imports of raw materials or intermediate goods. That way, you would minimise disruptions in the event of a Soros attack that you find yourself unable to defend against.
by aquilon - Mar 10 19 comments
by epochepoque - Mar 7 10 comments
by Cyrille - Mar 8 1 comment
by afew - Mar 7 36 comments
by DoDo - Mar 10 15 comments
by ARGeezer - Mar 10 6 comments
by marco - Mar 3 43 comments
by maracatu - Feb 25 13 comments
by gmoke - Mar 10
by ARGeezer - Mar 106 comments
by aquilon - Mar 1019 comments
by DoDo - Mar 1015 comments
by Cyrille - Mar 81 comment
by epochepoque - Mar 710 comments
by afew - Mar 736 comments
by Oui - Mar 560 comments
by Oui - Mar 413 comments
by marco - Mar 343 comments
by vbo - Mar 124 comments
by Oui - Mar 11 comment
by Oui - Mar 13 comments
by Metatone - Feb 287 comments
by vbo - Feb 27110 comments
by gmoke - Feb 263 comments
by vbo - Feb 25102 comments
by maracatu - Feb 2513 comments
by Oui - Feb 2432 comments
by Oui - Feb 2214 comments