Greek Crisis (continued):
calamitous choices
Jean-Claude Trichet, the ECB
and leaders European
by
Alexander Gerbi
.
L undi May 10, 2010, financial markets greeted with excitement (9.66% for the CAC 40 for example) the plan concocted by the Bank European Central Bank (ECB) and the governments of the euro area, on an intervention to the tune of 750 billion euros. A thunderous applause understandable, since that plan to sacrifice monetary orthodoxy which, in our previous article , we explained the dangerous implications.
Indeed, this orthodoxy maintains euro area governments in a weak position vis-à-vis financial markets, including Americans. On May 12, 2010, Jean-Claude Trichet and proclaimed proudly to the microphone in Europe 1: "The ECB does not work printing money." And he explained: " all cash we will give (...) occasions.
other words, the States beneficiaries of the plan will repay, which means that the aid granted by the ECB will increase the debt (and debt repayments) of countries already weakened. At the point of speeding up their downfall? Measures draconian that can "shave" a few billion here and there cost, in fact, at the end of the chain, very dear to the unfortunate Greek citizens, and soon Portuguese, English, Italian, French finally have often faced terrible difficulties ... A the key national economies sealed by a consumption drastically curbed since, and millions of impoverished citizens, pushed to the path of rebellion or, worse, despair.
Racing results, after the spectacular euphoria of Monday, May 10, exchanges have resumed the next day the way down, like the euro, point during the week, largely erasing the gains the famous Monday ...
It is absurd to fear that the ECB plan causes the collapse of the weakest economies in the euro area, a domino effect that will lead others in turmoil. Worse, the crisis could increase by contagion from the economic field to field and office politics.
A risk that translates into a new breakout of the euro, which revolved around 1, $ 26 on the eve of the plan of the ECB, and quotes today, Friday $ 1.23.
Working out of monetary orthodoxy would have released significant liquidity "healthy" (a few tens or hundreds of billions of euros) to plug budget gaps immediately and revive the economies of countries in difficulty, without imposing unduly stress on individuals but on a During the euro also still unnecessarily high. At the same time, the operation, by subjecting the ECB for euro area governments, would have send a strong signal at the markets, pointing out who the real master of the game icing on the cake, operation would permit the launch of a major development plan Africa, priority and essential partner for Europe at any point of view, including ethics and history.
The choice of the ECB and European governments is exactly the opposite: to weigh the force on the states and therefore on individuals under the pretext of protecting the euro. All without ever register the transaction as part of a broader strategy ... Which may ultimately cause still a drop in European currency in more serious proportions.
On arrival, we may be losing on all fronts. Because the advantage is, once more in the camp market and rating agencies, however, largely responsible for the financial crisis.
And face it, European countries, as always egotistical, cowardly or blind.
What the euro tumbles or explode in flight, boarding ticket now well and truly banned, they will be like John Major before ...
Alexander Gerbi
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