Here's the plan Trichet: ECB auctions at fixed rates and unlimited liquidity for the first months of 2011. Unlimited liquidity? Wow!
We wondered (not much) when the Fed has injected into the system QE2 from $ 900 billion (the QE2 provides for new purchases of U.S. government bonds , lasting between 5 and 6 years for a total of 600 billion dollars from now until June 2011: an average of 75 billion dollars a month placed on the market, and then continue the process of to reinvest the funds from the maturity of mortgage-backed securities for A total of 250-300 billion USD ), but now Trichet says "unlimited liquidity"!
And about inflation risk? On this front, the head of the ECB continues to not see, in 2011, a risk of overheating of the economies of Euroland "... I guess I would need a new pair of glasses.
We wondered (not much) when the Fed has injected into the system QE2 from $ 900 billion (the QE2 provides for new purchases of U.S. government bonds , lasting between 5 and 6 years for a total of 600 billion dollars from now until June 2011: an average of 75 billion dollars a month placed on the market, and then continue the process of to reinvest the funds from the maturity of mortgage-backed securities for A total of 250-300 billion USD ), but now Trichet says "unlimited liquidity"!
And about inflation risk? On this front, the head of the ECB continues to not see, in 2011, a risk of overheating of the economies of Euroland "... I guess I would need a new pair of glasses.
analyzes how the careful bimboalieno : Europe has struggled for months to try to distinguish themselves from the U.S. , only to now accept the evidence that the only way is to run the presses and buy those bonds that the market does not want more.
Furthermore, the ECB reference rate confirmed the eurozone to a record low of 1% (in force since May 2009). Remain unchanged even the marginal lending rate, 1, 75%, and the deposit rate at the Eurotower, 0.25%.
course you can not say that the rate of 1% is a high level, but becomes so when compared with 0.5% of the Bank of England and almost 'zero Fed and Bank of Japan. So if Trichet continues to ignore the crisis in Greece, Ireland, Spain, Portugal (and soon also in Italy) when it comes to interest rates, then it can only give wonderful suggestions to European leaders at the expense of our citizens Euroland: cuts in public spending, which translated means then minor goods and services for all (as if you already have it in abundance).
In this situation we all enjoy the vulture Strauss-Kahn, managing director of the International Monetary Fund, which reminds us that some European countries "are not far from 'edge of the precipice " with one hand and points his finger moralizing towards PIIGS and the other is ready to borrow from usurious loans.
Furthermore, the ECB reference rate confirmed the eurozone to a record low of 1% (in force since May 2009). Remain unchanged even the marginal lending rate, 1, 75%, and the deposit rate at the Eurotower, 0.25%.
course you can not say that the rate of 1% is a high level, but becomes so when compared with 0.5% of the Bank of England and almost 'zero Fed and Bank of Japan. So if Trichet continues to ignore the crisis in Greece, Ireland, Spain, Portugal (and soon also in Italy) when it comes to interest rates, then it can only give wonderful suggestions to European leaders at the expense of our citizens Euroland: cuts in public spending, which translated means then minor goods and services for all (as if you already have it in abundance).
In this situation we all enjoy the vulture Strauss-Kahn, managing director of the International Monetary Fund, which reminds us that some European countries "are not far from 'edge of the precipice " with one hand and points his finger moralizing towards PIIGS and the other is ready to borrow from usurious loans.
Salvatore Tamburro
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