Comedy relief from the ECB

by Chris Becker

You know, there’s no shortage of derision on tap when it comes to central bankers these days – and the European flavour does not disappoint this morning, following the G20 finance minister/central banking wow-pow in Cairns this weekend.

From Bloomberg:

“We will judge the combined effects of the measures, the measures of June and the measures of September, and then we’ll see if this is enough,” Coeure told reporters in Cairns, Australia. “In case it would not be enough, the Governing Council is ready to do more. But it’s way too early to tell.”

Oh really? This is an economy spiralling into deflation with record unemployment (youth unemployment at depression levels) yet its “too early to tell?”

Perhaps Cairns was the wrong venue – maybe go to Chicago next time and meet at the Laugh Factory.

Her’s some more comedy:

“If the question is whether the ECB is satisfied with inflation” at that level “then the answer is no,” Coeure said. “We are not satisfied. We have a price-stability mandate that is inflation coming back to 2 percent over the medium term. So anything we do is geared to achieving that.”

It’s obvious the ECB focus is on the wrong measure – inflation – but funnily enough, more than anything else, this shows the root problem with its economy, lack of consumer demand. Why? Rampant unemployment.

Here’s a chart from The Interpreter recently showing the change in unemployment since the GFC and the limp-wristed efforts of the ECB compared to the Fed:

euro unempoyment


The only thing that’s not too early to tell is if the plutocrats at the ECB should be out of job.

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  1. If these guys aren’t delusional or even intentionally crooked, then they are nothing more than the proverbial goldfish swimming around a rock.

    And I bet all those other Junketeers including our own Hockey and Co, would have sat there nodding their heads with an ignorant straight face.

  2. The ECBeauro should be strung up by their larynx. Inflation? How about unemployment you criminals on €400k tax free!

    • Yeah mig, it looks like we’ll be looking more and more to countries other than the US and Europe for international leadership.

      The 43 year experiment of fiat currencies is coming to an end.

      At the Chinese Gold Congress last week the president of China National Gold openly discussed that now the renminbi is becoming internationalised there should be backing of the currency in gold.
      In 2013 China produced 420 tonnes of gold and imported another 1200 tonnes and China is on track to have 14,000 tonnes of gold as reserves by 2020 compared to the US’s 8,500 tonnes.

      The Swiss referendum on November 30 to decide to have their currency 20% backed by gold and to repatriate their gold from Canada and the UK has very little opposition and the Swiss are expected to buy 1,700 tonnes of gold over the next few years.

      The Shanghai Gold Exchange announced that they will be trading gold internationally, and they intend to set the physical price for gold, relieving the Comex of that task.There’ll be 11 renminbi contracts… Not much settling in USDs in future.
      A similar situation is expected with the new Singapore Gold Exchange.

      Meanwhile the Middle East has again captured the imagination of the West at the same time that John Howard has apologised for his hasty contribution in that regard.