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.
Friends come and go. Enemies accumulate.
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 Frank Schnittger - Sep 13 36 comments
by Frank Schnittger - Sep 11 8 comments
by Frank Schnittger - Sep 12 22 comments
by Bernard - Sep 10 9 comments
by Frank Schnittger - Sep 9 25 comments
by Oui - Sep 14 3 comments
by Cat - Sep 11 20 comments
by Oui - Sep 10 15 comments
by Oui - Sep 143 comments
by Frank Schnittger - Sep 1336 comments
by Frank Schnittger - Sep 1222 comments
by Cat - Sep 1120 comments
by Frank Schnittger - Sep 118 comments
by Bernard - Sep 109 comments
by Oui - Sep 1015 comments
by Oui - Sep 1019 comments
by Frank Schnittger - Sep 925 comments
by gmoke - Sep 87 comments
by ATinNM - Sep 833 comments
by Frank Schnittger - Sep 5200 comments
by Frank Schnittger - Sep 438 comments
by Oui - Sep 447 comments
by ARGeezer - Sep 428 comments
by Cat - Sep 34 comments
by john_evans - Sep 253 comments
by Bernard - Sep 182 comments
by ATinNM - Aug 3169 comments
by Frank Schnittger - Aug 28165 comments