Intervention in the Euro, But How Long Can it Last?
Pic credit: banksy
How long can the ECB keep it up?
Via Pragmatic Capitalism:
It even makes sense for the ECB to coordinate such a move with foreign central banks so as to slow the decline in the Euro. None of this, however, does anything to resolve the core problems at hand. This is just more government meddling in a problem they either fail to understand or are too scared to confront.
TPC also believes that Meltup and any talk of hyperinflation is total nonsense. K, we'll give him that it "appears" like deflation but as I've said all along, it is mostly the evaporation of made-up capital. There's no precedent and we're too wound up on fake money to notice. We can call it deflation (asset deflation doesn't even quite do it) and it's not going anywhere but it does not change the consequences of the furious attempt at restoring lost capital that will never - EVER - come back, no matter how many accounting rules we bend.
The answer on the ECB? Not as long as the Fed; last time I checked, oil was not denominated in euros. Just sayin.