Top Diaries

So is there a method of removing him from office?

by oliver on Fri Feb 24th, 2012 at 09:08:34 AM EST
[ Parent ]

Legally? I suppose dead girl/live boy might do it.

But if this farce continues for much longer, we may start seeing central banksters being removed from office extralegally. Certainly there is a non-trivial probability that the next Greek parliament will remove the Greek central bankster. If the parliament of the street doesn't do it for them first.

- Jake

If you only spend 20 minutes of the rest of your life on economics, go spend them here.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Fri Feb 24th, 2012 at 09:23:49 AM EST
[ Parent ]

Central bank managers has in accordance with EMU the right to have their firing tried by the Court. What then happens is untested afaik.

A vote for PES is a vote for EPP! A vote for EPP is a vote for PES! Support the coalition, vote EPP-PES in 2009!

by A swedish kind of death on Fri Feb 24th, 2012 at 09:35:32 AM EST
[ Parent ]

Re: Draghi: "I come to bury (4.00 / 9)

See?

there are still labour rights in europe!

You pessimists.

by IM on Fri Feb 24th, 2012 at 10:42:25 AM EST
[ Parent ]

Well, if you can drag your feet on that trial long enough then it won't matter.

Beats the other way to extrajudicially remove a central bankster.

- Jake

If you only spend 20 minutes of the rest of your life on economics, go spend them here.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Sat Feb 25th, 2012 at 03:41:25 AM EST
[ Parent ]

Re: Draghi: "I come to bury (4.00 / 3)

Just my thought when I read what he said. What's next, the agricultural commissioner telling us we need to expand oil refining?

It's one thing to have central bankers who don't understand basic monetary policy. It's quite another when they try to spread their ignorance into areas they aren't even supposed to be experts on.

Peak oil is not an energy crisis. It is a liquid fuel crisis.

by Starvid on Fri Feb 24th, 2012 at 10:37:35 AM EST
[ Parent ]

Re: Draghi: "I come to bury (4.00 / 4)

Do you remember this? What's left of central bank independence? (Willem Buiter's Maverecon, May 5, 2009)

I happen to agree with Governor King on the undesirability of a further discretionary fiscal stimulus for the UK. But why on earth did he say this in public? This was definitely a sliding tackle, nowhere near the ball, with both feet aimed firmly at sensitive parts of the political anatomy of the Chancellor and, even more, of the Prime Minister. It politicises the Bank of England and makes it fair game for any government minister or member of the opposition who wants to put pressure on the bank or attack it in public. Not smart.
President Trichet of the ECB is already so far down the road of telling governments what to do and what not to do in the fiscal and structural reform domains, that one is hardly surprised by yet another lecture on budgetary policy from the Eurotower. Traditionally, continental European central bankers speak very little about monetary policy in public, and are often unwilling to engage in public debate or answer questions about their monetary duties, but carry on endlessly about budgetary and structural reform matters. It's always easier to speak about things you have no responsibility for, that are not part of your mandate and about which you probably don't know very much.
The opposite problem has been encountered in the US, when Ben Bernanke has been so often seen shoulder-to-shoulder with past and present Secretaries of the Treasury, that it is hard to tell (except for the beard) where one begins and the other ends. A Chairman of the Fed ought not to publicly endorse or reject fiscal measures, budgets or plans. It's not his mandate and not his competence. It also further politicises the Fed and undermines its future independence.

tens of millions of people stand to see their lives ruined because the bureaucrats at the ECB don't understand introductory economics -- Dean Baker

by Migeru (migeru at eurotrib dot com) on Fri Feb 24th, 2012 at 10:52:58 AM EST
[ Parent ]

Money-credit is the weapon of choice in the current war and central bankers are like the heavy artillery. You are going to hear from them and might be blown up by them. It is past time for polite pretense.

As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."

by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Sat Feb 25th, 2012 at 02:25:07 AM EST
[ Parent ]

Re: Draghi buries European Social Model (none / 0)

Caught on EUObserver's twitter stream this morning...

tens of millions of people stand to see their lives ruined because the bureaucrats at the ECB don't understand introductory economics -- Dean Baker

by Migeru (migeru at eurotrib dot com) on Fri Feb 24th, 2012 at 06:33:45 AM EST

Re: Draghi on full employment (4.00 / 9)

So, basically, the ECB runs an employment-blind monetary policy which is, in fact, deflationary with respect to what a full employment policy wold be.

Then we're told the resulting unemployment is evidence that "the social model is no more", and that "reform" is the solution.

tens of millions of people stand to see their lives ruined because the bureaucrats at the ECB don't understand introductory economics -- Dean Baker

by Migeru (migeru at eurotrib dot com) on Fri Feb 24th, 2012 at 06:41:35 AM EST

"Reform" is always the solution.

If a country does well it is because of "reform", even if it hasn't happened or if the changes are nothing like what's prescribed. See Ireland, pre-crash.

If a country is in trouble, it needs "reform". See Ireland, now.

by Colman (colman at eurotrib.com) on Fri Feb 24th, 2012 at 06:49:21 AM EST
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Re: Draghi on full employment (4.00 / 3)

It's clear to me that the big reform push right now has nothing to do with employment but that the goal is to resurrect the Bolkestein services directive.

tens of millions of people stand to see their lives ruined because the bureaucrats at the ECB don't understand introductory economics -- Dean Baker

by Migeru (migeru at eurotrib dot com) on Fri Feb 24th, 2012 at 06:53:44 AM EST
[ Parent ]

Remind me which one that was?

by Colman (colman at eurotrib.com) on Fri Feb 24th, 2012 at 06:58:42 AM EST
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Re: Draghi on full employment (4.00 / 7)

If you provide services in another member states, your employees don't have to abide by the host country's labour regulations.

I.e., all private service providers would be allowed move their HQ to the country with the laxest labour regulations and employ workers under those laxer foreign regulations.

tens of millions of people stand to see their lives ruined because the bureaucrats at the ECB don't understand introductory economics -- Dean Baker

by Migeru (migeru at eurotrib dot com) on Fri Feb 24th, 2012 at 07:00:46 AM EST
[ Parent ]

Oh, that one. Excellent.

Wouldn't they also have to recruit in those laxer places?

by Colman (colman at eurotrib.com) on Fri Feb 24th, 2012 at 07:02:07 AM EST
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Re: Draghi on full employment (4.00 / 4)

No, no.

For example, you take the Irish health service, privatize it, and then move the HQ to Greece and put all the workers on the new Troika minimum wage and stuff. All hail the Single European Market.

Of course, you're more likely to get a bunch of Greeks volunteering to take those jobs in Ireland because living under the Troika must be more bleak than Irish weather, even if you're in Dublin on a Greek minimum wage.

Or something.

tens of millions of people stand to see their lives ruined because the bureaucrats at the ECB don't understand introductory economics -- Dean Baker

by Migeru (migeru at eurotrib dot com) on Fri Feb 24th, 2012 at 07:06:47 AM EST
[ Parent ]

Well, not quite, according to Wikipedia.

In these social fields the Posting-of-Workers Directive takes over and determines that short-term social protection such as minimum wages and HSW, are governed by the rules of the country where the services are provided (the host country), while long-term benefits, such as pension and unemployment contributions remain with the country of origin (to which the posted workers returns after the service).

Is that wrong?

by Colman (colman at eurotrib.com) on Fri Feb 24th, 2012 at 07:09:17 AM EST
[ Parent ]

while long-term benefits, such as pension and unemployment contributions remain with the country of origin (to which the posted workers returns after the service)

So, if you as an Irish worker get "redefined" as a posted worker from Cyprus, what pension and unemployment do you get?

tens of millions of people stand to see their lives ruined because the bureaucrats at the ECB don't understand introductory economics -- Dean Baker

by Migeru (migeru at eurotrib dot com) on Fri Feb 24th, 2012 at 07:11:31 AM EST
[ Parent ]

Sure, but not minimum wage.

by Colman (colman at eurotrib.com) on Fri Feb 24th, 2012 at 07:12:15 AM EST
[ Parent ]

But the answer is I don't know the details.

tens of millions of people stand to see their lives ruined because the bureaucrats at the ECB don't understand introductory economics -- Dean Baker

by Migeru (migeru at eurotrib dot com) on Fri Feb 24th, 2012 at 07:16:00 AM EST
[ Parent ]

But it isn't going to be good.

by Colman (colman at eurotrib.com) on Fri Feb 24th, 2012 at 07:24:09 AM EST
[ Parent ]

The Bolkestein directive wasn't defeated twice in the European Parliament for no reason.

tens of millions of people stand to see their lives ruined because the bureaucrats at the ECB don't understand introductory economics -- Dean Baker

by Migeru (migeru at eurotrib dot com) on Fri Feb 24th, 2012 at 08:35:43 AM EST
[ Parent ]

But there is a service directive:

The proposal, after the 2004 original draft had been substantially amended, was approved on 12 December 2006 by the European Parliament and Council, and adopted as the Directive 2006/123/EC.

I always understood the rules that yuo have to observe the rules on workplace safety and maximun hours etc. in th host country, but are only obligated to pay into the social security institutions of the originating country.

by IM on Fri Feb 24th, 2012 at 10:10:29 AM EST
[ Parent ]

Re: Draghi on full employment (4.00 / 5)

Aha:

>Although the final version did not include the "country of origin principle", the Directive instead reminded Member States of the principle of free movement, while accepting inroads when free movement collides with other public interests. However, before making such inroads, authorities have to verify and recognize any protection already provided in the country of origin - under the mutual recognition principle, they need to take into account what takes place in other countries before proceeding.<

Now that is somewhat different.

by IM on Fri Feb 24th, 2012 at 10:11:57 AM EST
[ Parent ]

Re: Draghi on full employment (4.00 / 5)

I think the "principle of free movement" is read by citizens as "free movement by people" but is meant by politicians as "free movement of workers by companies".

tens of millions of people stand to see their lives ruined because the bureaucrats at the ECB don't understand introductory economics -- Dean Baker

by Migeru (migeru at eurotrib dot com) on Fri Feb 24th, 2012 at 10:13:35 AM EST
[ Parent ]

Re: Draghi on full employment (4.00 / 8)

I think it also depends on the national laws interpreting the directive and then later on the interpretation of these laws of the European Court of Justice.

I wish the european left would care as much about the judges of the ECJ as the american left does about the Supreme Court.

by IM on Fri Feb 24th, 2012 at 10:22:54 AM EST
[ Parent ]

Yes, which is why it's so irksome that all the talk now from the serious people is that the way to squeeze growth out of the austerity stone is "to finalize the integration of the common services market". What the heck is behind this?

tens of millions of people stand to see their lives ruined because the bureaucrats at the ECB don't understand introductory economics -- Dean Baker

by Migeru (migeru at eurotrib dot com) on Fri Feb 24th, 2012 at 10:12:11 AM EST
[ Parent ]

Nothing good, I fear. The whole EU governance process seems to be turning cancerous.

As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."

by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Sat Feb 25th, 2012 at 02:27:30 AM EST
[ Parent ]

Re: Draghi on full employment (4.00 / 4)

The letter, advocating greater opening of the EU's internal market for services

This is a transparent case of bait and switch. The consensus now will be that a "jobs-friendly grwoth and growth-friendly consolidation" will be a combination of Deauville and Bolkestein.

tens of millions of people stand to see their lives ruined because the bureaucrats at the ECB don't understand introductory economics -- Dean Baker

by Migeru (migeru at eurotrib dot com) on Fri Feb 24th, 2012 at 07:10:14 AM EST
[ Parent ]

Re: Draghi on full employment (4.00 / 5)

Ironically, this is actually worse than the US.

There you have to obey in state employment laws - it's true that there are states where those are useless, but at least a state can mandate a decent situation.

Here, that will become impossible, as any discrimination against EU companies on grounds of workers rights will be illegal...

by Metatone (metatone [a|t] gmail (dot) com) on Fri Feb 24th, 2012 at 12:50:09 PM EST
[ Parent ]

This kind of stuff is no longer ironic.

tens of millions of people stand to see their lives ruined because the bureaucrats at the ECB don't understand introductory economics -- Dean Baker

by Migeru (migeru at eurotrib dot com) on Fri Feb 24th, 2012 at 09:03:05 PM EST
[ Parent ]

If you are going to make things uniform throughout an area it matters very much who is in charge and what is their goal.

As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."

by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Sat Feb 25th, 2012 at 02:30:02 AM EST
[ Parent ]

There's a bit in today's Salon where someone points out that Germany is in fact breaching the original intent of the monetary union by running a policy that is not targeting 2% inflation - and somehow it's become the new target...

by Metatone (metatone [a|t] gmail (dot) com) on Fri Feb 24th, 2012 at 12:44:06 PM EST
[ Parent ]

It's from EuroIntelligence, quoted by Migeru:

The situation would not be nearly as bad if all partners were to converge to the two-percent stability path that the union originally committed to. France would be right there, Italy and Spain face limited disinflation, and Germany reflation. Instead, as Germany is forcing Europe to converge to its own new lower standard, even France is now facing a debt deflation; not to mention others. Greece is only a sideshow in all this.

by Metatone (metatone [a|t] gmail (dot) com) on Fri Feb 24th, 2012 at 12:48:15 PM EST
[ Parent ]