Are we doing this again?
All the eyes of the world seems to be on G20, looking for responses... Are we doinf this again? Relying on such people and organisations which have sunk us at this level of shitness? Yes, they are!
The European Central Bank is expected to cut eurozone interest rates by 50 basis points to 1 per cent on Thursday, but the key question is whether the ECB will follow the example of the US Federal Reserve and Bank of England in pumping more money into the economy via quantitative easing (QE).
The ECB seems sure that the eurozone recession is a normal cyclical downturn and appears unconvinced that the credit crunch will result in a severe and prolonged slump that would require “non-standard” measures as a response.
Until now the European Central Bank has resisted temptation for easing measures, like pumping more money into the economy, as the US Federal Reserve and Bank of England have done - they are such a sissy, arent't they? Buying back government bonds, however, remains a more complex and politically delicate issue - a more stinky bunch of shit, if you know what I mean!
They want to relax the collateral criteria.
Mr. Jennifer McKeown at Capital Economics presages that “The longer that it takes (the ECB) to come up with a plan, the greater the risk that the eurozone will experience a longer recession than elsewhere”. Sounds apocaliptic? Or too pushy? Well, here in Ireland we know how it works: they first throw you something nobody understands entirely and try to play a frind's fair game. When they loose, they will frighten you to dead before play the game again - viz. Lisbon Treaty. Others say there is a “high probability” that the ECB will embark at some stage into QE with purchases of private debt being more likely than buying of government bonds. No matter what they do, you know who will be paying the bill, don't you?
Ireland is doing its job already. Primer Minister Brain Cowen (yes, the one portrayed last week in some art galleries) has announced will be 5 years of "hard-times", and our life standard might be reduced at least in 10%.
I wish we could say that on our taxes, which seems to go all the other way round...
The European Central Bank is expected to cut eurozone interest rates by 50 basis points to 1 per cent on Thursday, but the key question is whether the ECB will follow the example of the US Federal Reserve and Bank of England in pumping more money into the economy via quantitative easing (QE).
The ECB seems sure that the eurozone recession is a normal cyclical downturn and appears unconvinced that the credit crunch will result in a severe and prolonged slump that would require “non-standard” measures as a response.
Until now the European Central Bank has resisted temptation for easing measures, like pumping more money into the economy, as the US Federal Reserve and Bank of England have done - they are such a sissy, arent't they? Buying back government bonds, however, remains a more complex and politically delicate issue - a more stinky bunch of shit, if you know what I mean!
They want to relax the collateral criteria.
Mr. Jennifer McKeown at Capital Economics presages that “The longer that it takes (the ECB) to come up with a plan, the greater the risk that the eurozone will experience a longer recession than elsewhere”. Sounds apocaliptic? Or too pushy? Well, here in Ireland we know how it works: they first throw you something nobody understands entirely and try to play a frind's fair game. When they loose, they will frighten you to dead before play the game again - viz. Lisbon Treaty. Others say there is a “high probability” that the ECB will embark at some stage into QE with purchases of private debt being more likely than buying of government bonds. No matter what they do, you know who will be paying the bill, don't you?
Ireland is doing its job already. Primer Minister Brain Cowen (yes, the one portrayed last week in some art galleries) has announced will be 5 years of "hard-times", and our life standard might be reduced at least in 10%.
I wish we could say that on our taxes, which seems to go all the other way round...
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