European Salon de News, Discussion et Klatsch - 1 October | 120 comments (120 topical, editorial, 0 hidden)

By effectively allowing the German parliament a veto over a monetary policy instrument

So much for central bank independence.

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

by Starvid on Mon Oct 1st, 2012 at 05:33:31 AM EST
[ Parent ]

Central bank independence is the last refuge of the scoundrel.

I distribute. You re-distribute. He gives your hard-earned money to lazy scroungers. -- JakeS

by Carrie (migeru at eurotrib dot com) on Mon Oct 1st, 2012 at 06:33:01 AM EST
[ Parent ]

Re: Europe (4.00 / 3)

It's the old two-step or Catch 22.

Germany refuses to allow the ECB to print money. (Not sure how they get away with this, but so far they have.)

Because the ECB can't print money, Europe must beg for money from Germany.

Then, because it's German money, the German constitution is a limiting factor.

Thus - nothing happens.

by Metatone (metatone [a|t] gmail (dot) com) on Mon Oct 1st, 2012 at 06:34:29 AM EST
[ Parent ]

Re: Europe (none / 0)

I don't understand spain though. What are they trying to do? Sidestep the ESM and go directly to the ecb? That won't work. Or waiting for the ESM to avoid complications? Haggling about the conditions?

If the spanish banks need 60 billion and most of it nationalized banks, a avoidance of a formal rescue doesn't really seems possible.

by IM on Mon Oct 1st, 2012 at 06:58:03 AM EST
[ Parent ]

Re: Europe (none / 1)

It seems central bank independence is code, which actually means "you can have whatever monetary policy you feel like, as long as it is Bundesbank policy". A bit like those black Ford Model T's.

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

by Starvid on Mon Oct 1st, 2012 at 08:59:59 AM EST
[ Parent ]

European Salon de News, Discussion et Klatsch - 1 October | 120 comments (120 topical, 0 editorial, 0 hidden)

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