If you have "no place to go," come here!

Will European bank runs force the ECB to act like the issuer of currency it is?

Read Marshall Auerback for a lucid explanation and the moral.

The ECB is the ONLY institution which can deal with the solvency issue. And please: no more ridiculous discussions about the ECB’s solvency, which has no applicability to a central bank. .

The ECB is the currency-issuer of the Euro. It can never run out of Euros. Dangerous talk of the ECB’s “looming insolvency” simply perpetuates the current crisis conditions.

An optimist would believe that the European Powers That Be will be forced into doing what is right, even though with every fibre of their being they believe it is wrong.

A pessimist would believe that whatever the banksters want, they get, and whatever exit strategy involves the biggest sacks of loot over their shoulders as they make their escape will be the one adopted.

I'm not sure what the realist position would be (and life is complicated and not schematic).

One thing I do bear in mind, amidst general glee at the collapse of what many believe was an ill-conceived project -- the Euro -- is that the EU was formed after two horrific rounds of bloodletting -- World Wars I and II -- and that preventing that great evil is a good, even a noble, process (modulo the corruption, and what isn't). Last I checked, the Prussians hadn't marched into Paris, and for all the sins of the banksters, which are many, the trenches of World War I, and the concentration camps of World War II, are something to be remembered and avoided. It's always possible to make things worse....

No votes yet