Intervention in the Euro, But How Long Can it Last?

Friday, May 21, 2010 , , , 3 Comments

 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.

Jr Deputy Accountant

Some say he’s half man half fish, others say he’s more of a seventy/thirty split. Either way he’s a fishy bastard.


Anonymous said...

I'm wondering how that proposal/plan floated by the Iranian President to price oil in Euro's instead of Dollars is looking today. hahaha!

sort of out of the frying pan and into the fire? snicker, snicker

"The move was taken because the government wishes to protect itself from the fragility of the US economy and the weak dollar."

eat shit and die Ahmadinejad!

Anonymous said...

is it just me and my inner perpetual 7th grade persona that's saying "Smooth Move, Ex-Lax" or is it a shared sentiment?

Anonymous said...

"According to one western analysis of figures from the Iranian central bank, those lower oil earnings are seriously depleting Iranian foreign currency reserves. Mr Ahmadinejad's profligate spending have made things worse as well."

Yes we have problems here and we always will but they pale by comparison to some corners of the world.

In his infinite wisdom the bozo decides to take his economic mainstay and reprice it in a currency that is doomed.