[They own it all - including YOU - and they bought it all with counterfeit money!]
The US is attempting to conquer the world by just printing money, but large parts of the world are refusing to sell themselves to the "Yankee Dollar" and are using other currencies instead.
(What follows will be much easier to understand if you have read my earlier blog entry )
Martin Wolf wrote recently in the Financial Times:-
"The US wants to inflate the rest of the world, while the latter is trying to deflate the US. The US must win, since it has infinite ammunition: there is no limit to the dollars the Federal Reserve can create. What needs to be discussed is the terms of the world’s surrender: the needed changes in nominal exchange rates and domestic policies around the world."
[Martin Wolf, “Why America is going to win the global currency battle,” Financial Times, October 13, 2010]
However, I (the author) claim that Martin Wolf is wrong when he says the "US must win" and so I put forward the opinion of Professor Michael Hudson.
[[What follows is extracted from:- “U.S. “Quantitative Easing” is Fracturing the Global Economy “ by Professor Michael Hudson,
* Distinguished Research Professor of Economics at the University of Missouri, Kansas City and
* author of "Super Imperialism: The Economic Strategy of American Empire."
What I (the author) have done here is to lift direct quotes from his article but I have also left-out other bits of his article in order to make clear just one particular thread of his thoughts.]]
Professor Hudson says the world economy is breaking into:-
“ two spheres:
So the upshot of the Fed trying save the banks from negative equity is to flood the global economy with a glut of U.S. dollar credit, destabilizing the global financial system”
[ More evidence of destabilisation is given by Joseph Stiglitz (who won the 2001 Nobel Prize for economics) and who stated recently :-
“That [qe2] money is supposed to reignite the American economy but instead goes around the world looking for economies that actually seem to be functioning well and wreaking havoc there.”
Joseph Stiglitz, “Why Easier Money Won't Work,” Wall Street Journal, October 23, 2010]
Hudson goes on to say: -
“....U.S. banks are engaging in .....currency speculation, commodity speculation (driving up food and mineral prices sharply this year), and buying into companies in Asia and raw materials exporters.”
“Under current arrangements the dollars being pumped into the global economy are recycled back into U.S. Treasury IOUs.
When foreign sellers turn over their dollar receipts to their banks for domestic currency, these banks turn the payment over to the central bank – which then faces a Hobson’s Choice:
either to
“These financial gambles are setting today’s exchange rates, not basic production costs.
In terms of relative rates of return, foreign central banks earn 1% on their U.S. Treasury bonds,while U.S. investors buy up the world’s assets.
In effect, U.S. diplomats are demanding that other nations relinquish their trade surpluses, private savings and general economic surplus to U.S. investors, creditors, bankers, speculators, arbitrageurs and vulture funds in exchange for this 1% return on U.S. dollar reserves of depreciating value....
The global economy is being turned into a tributary system, achieving what military conquest sought in times past.
[ In order to make the meaning of the above line more clear I include here another quote from Professor Hudson said on a radio program called "DEMOCRACY NOW" on Nov 05 2010.
"Well, the object of warfare is to take over a country’s land, raw materials and assets, and grab them. And in the past, that used to be done militarily by invading them. But today you can do it financially simply by creating credit, which is what the Federal Reserve has done"
]
This turns out to be implicit in QE II.
Arbitrageurs and speculators are swamping Asian and Third World currency markets with low-priced U.S. dollar credit to make predatory trading profits at the expense of foreign central banks trying to stabilize their exchange rates by selling their currency for dollar-denominated securities – under conditions where the United States and Canada are blocking reciprocal direct investment”
“Hardly by surprise, other countries are taking defensive measures against this speculation, and against “free credit” takeovers using inexpensive U.S. electronic “keyboard bank credit.” For the past few decades they have stabilized their exchange rates by recycling dollar inflows and other foreign currency buildups into U.S. Treasury securities”
“But the most decisive counter-strategy to U.S. QE II policy is to create a full-fledged BRIC-centered currency bloc that would minimize use of the dollar.
China has negotiated currency-swap agreements with Russia, India, Turkey and Nigeria”
“A BRIC-centered system would reverse the policy of open and unprotected capital markets put in place after World War II.
This trend has been in the making since the BRIC countries met last year in Yekaterinburg, Russia, to discuss such an international payments system based on their own currencies rather than the dollar, sterling or euro.
In September, China supported a Russian proposal to start direct trading using the yuan and the ruble rather than pricing their trade or taking payment in U.S. dollars or other foreign currencies.
China then negotiated a similar deal with Brazil.
And on the eve of the IMF meetings in Washington on Friday, Premier Wen stopped off in Istanbul to reach agreement with Turkish Prime Minister Erdogan to use their own currencies in a planned tripling Turkish-Chinese trade to $50 billion over the next five years, effectively excluding the dollar.
China cannot make its currency a world reserve currency, because it is not running a deficit and therefore cannot supply large sums of renminbi to other countries via trade. So it is negotiating currency-swap agreements with other countries, while using its enormous dollar reserves to buy up natural resources in Australia, Africa and South America.
This has reversed the dynamics that led speculators to gang up and cause the 1997 Asia crisis.
At that time the great speculative play was against the “Asian Tigers.” Speculators swamped their markets with sell orders, emptying out the central bank reserves of countries that tried (in vain) to keep their exchange rates stable in the face of enormous U.S. bank credit extended to George Soros and other hedge fund managers and the vulture funds that followed in their wake.
The IMF and U.S. banks then stepped in and offered to “rescue” these economies if they agreed to sell off their best companies and resources to U.S. and European buyers.
This was a major reason why so many countries have tried to free themselves from the IMF and its neoliberal austerity programs, euphemized as “stabilization” plans rather than the economic poison of chronic dependency and instability programs.
Left with only Turkey as a customer by 2008, the IMF was a seemingly anachronistic institution whose only hope for survival lay in future crises. So that of 2009-10 proved to be a godsend. At least the IMF found neoliberal Latvia and Greece willing to subject themselves to its precepts. Today its destructive financial austerity doctrine is applied mainly by Europe’s “failed economies.””
“This has changed the equation between industrial-nation creditors and Third World debtors.
Many dollar-strapped countries have been subject to repeated raids on their central banks – followed by IMF austerity programs that have shrunk their domestic markets and made them yet more dependent on imports and foreign investments, reduced to selling off their public infrastructure to raise the money to pay their debts.
This has raised their cost of living and doing business, shrinking the economy all the more and creating new budget squeezes driving them even further into debt.
But China’s long-term trade and investment deals – to be paid in raw materials, denominated in renminbi rather than dollars – is alleviating their debt pressures to the point where currency traders are jumping on the bandwagon, pushing up their exchange rates."
"The major international economic question today is how such national economies can achieve greater stability by insulating themselves from these predatory financial movements.”
----------------------------------
COMMENT
Let me say that again in slightly different words.
Several countries in Europe have been financially destabilised and forced to go to the IMF - although nobody seems to know who caused that to happen. Simultaneously, (and at exactly the same time) the USA is going around the world financially destabilising countries and causing them to go to the IMF
Do you think - maybe - there might be some kind of connection?
I do. I think that it is the USA which is causing the financial destabilisation
Also - the main-stream media currently seems convinced that there is a "global economic crisis" - while simultaneously, there is a country going around the globe causing multiple economic crises. Do you think, maybe, there might be some kind of causal connection?
I do. I think that the most likely candidate for the cause of the global economic crisis is the USA.
To make my point even more clear and more more explicit - I think that it is the US which is causing the global economic crisis and the financial destabilisation that is being called "AUSTERITY." The US is causing it in Greece and also everywhere else including the UKI!!!
===============
Addendum 01
Russia, China and India forming a military alliance
What follows is extracted from:- Voice Of Russia http://english.ruvr.ru/2010/11/14/34127941.html.
It is about a military alliance between Russia India and China - three of the members of BRIC, the fourth one being Brazil.
"foreign ministers of Russia, India and China get together on Monday [Nov, 2010]. During the meeting in Uhan, China, "
"During President Dmitry Medvedev’s visit to Beijing in September the two countries’ leaders agreed on the need for the Asia-Pacific countries to reiterate the principle of the indivisibility of their common security in this generally unstable part of the world. "
"In Moscow, foreign policy expert Andrei Volodin believes that if the three ministers manage to reach a common stand on regional security, the meeting will have every reason to be called a success. He fears, however, that India’s apprehension towards China’s increasingly active role in the region may be a problem here."
....
"we will have every reason to hope that, working together, Russia, India and China will eventually be able to settle existing and future conflicts in the Asia-Pacific region."
....
"Just hours before the start of Monday’s meeting in Uhan, emergency response experts will get together in New Delhi to map out a set of joint projects for next year when Russia takes over the organization’s rotating chair."
===============
I interpret this as Russia, China and India forming a military and economic alliance against (military and economic) attack by the USA.
===============
ADDENDUM 02QE2 and the G20 - MORE ABOUT FINANCIAL WARFARE
taken from "Bernanke Defends Fed Monetary Policy, Blames China for Currency Tensions" by Barry Gray - Global Research November 23, 2010
"The most ferocious public attack on the Fed’s launching of “QE2” — the second round of quantitative easing — came from Germany, whose finance minister, Wolfgang Schäuble, earlier this month (Nov 2010) said the move was “undermining the credibility of US financial policy.”
Speaking on the eve of this month’s G20 summit of leading economies, held in Seoul, Schäuble went on to say the US “growth model,” based on “borrowed money” and an inflated financial sector, was in “deep crisis.”
He charged Washington with hypocrisy for accusing the Chinese of manipulating their exchange rate and then “artificially [depressing] the dollar exchange rate by printing money.”
Washington’s policy has also come under attack from a host of emerging economies, including Brazil, Thailand, South Africa, Taiwan and South Korea, whose currencies and asset prices are being driven up by waves of hot money stoked by the Fed’s printing presses.
At the G20 summit on November 11-12<2010>, the US failed to gain support from Europe, Japan and other Asian nations for a coordinated attack on China’s monetary policy, and was unable to push through a policy limiting current account imbalances to 4 percent of gross domestic product. (Under the US proposal, the only country that would be immediately targeted is China, whose surplus is above 4 percent of GDP).
The summit ended with a face-saving and vague communique that avows agreement on the need to rebalance the world economy, but commits no nation to do anything concrete about it.
===============
ADDENDUM 03
"China, Russia quit dollar"
China Daily November 24, 2010
China and Russia have decided to renounce the US dollar and resort to using their own currencies for bilateral trade, Premier Wen Jiabao and his Russian counterpart Vladimir Putin announced late on Tuesday (3/Nov/2010)"
===============
ADDENDUM 04
"BRIC is Now BRICS"
by Stuart Bramhall Z-Net Friday, Dec 31, 2010
(What follows are extracts from Mr Bramhall's article on z-net)
South Africa has now been formally accepted into the BRIC (Brazil, Russia, India, China) economic alliance.
....
The BRIC countries are not formally linked but have held summits and taken steps to boost financial cooperation and investment opportunities among them. There seems to be an unstated agenda of building a strong economic alliance to counterbalance the economic strength of the US and the European Union. Especially given the Americans’ belligerent approach to resource acquisition (via military domination),
....
According to China’s state news agency Xinhua, BRIC has accepted South Africa as a full member of the group. South African President Jacob Zuma was informed in a letter from Chinese President Hu Jintao in a letter of invitation to attend the third BRIC leaders’ summit, to be held in April 2011 in Beijing.
....
China has now publicly announced its willingness to back the euro by buying debt (i.e. making loans) to financially troubled EU countries, such as Greece, Spain and Italy, who are unable to afford the high interest rates Goldman Sachs and other bond holders want to charge them
===============
What follows is from:- "Central Bank steps up its cash support to Irish banks financed by institution printing own money" Irish Independant January 15 2011.
“The Irish Independent learnt last night that the Central Bank of Ireland is financing €51bn of an emergency loan programme by printing its own money." .... .....
A spokesman for the ECB said the Irish Central Bank is itself creating the money it is lending to banks not borrowing cash from the ECB to fund the payments. The ECB spokesman said the Irish Central Bank can create its own funds if it deems it appropriate, as long as the ECB is notified.
Next is some maths from Financial News Network
"So let’s do the math: ICB “money printing” has increased by €40 billion. For a country whose GDP is about €160 billion, this means that Ireland has printed the equivalent of 25% of its GDP"
And there is an excellent analysis of the relevant law in the Financial Times:- The mechanics of Irish euro-printing
[Back to Main Index]
The US is attempting to conquer the world by just printing money, but large parts of the world are refusing to sell themselves to the "Yankee Dollar" and are using other currencies instead.
(What follows will be much easier to understand if you have read my earlier blog entry )
FINANCIAL WARFARE
Martin Wolf wrote recently in the Financial Times:-
"The US wants to inflate the rest of the world, while the latter is trying to deflate the US. The US must win, since it has infinite ammunition: there is no limit to the dollars the Federal Reserve can create. What needs to be discussed is the terms of the world’s surrender: the needed changes in nominal exchange rates and domestic policies around the world."
[Martin Wolf, “Why America is going to win the global currency battle,” Financial Times, October 13, 2010]
However, I (the author) claim that Martin Wolf is wrong when he says the "US must win" and so I put forward the opinion of Professor Michael Hudson.
[[What follows is extracted from:- “U.S. “Quantitative Easing” is Fracturing the Global Economy “ by Professor Michael Hudson,
* Distinguished Research Professor of Economics at the University of Missouri, Kansas City and
* author of "Super Imperialism: The Economic Strategy of American Empire."
What I (the author) have done here is to lift direct quotes from his article but I have also left-out other bits of his article in order to make clear just one particular thread of his thoughts.]]
Professor Hudson says the world economy is breaking into:-
“ two spheres:
- A dollar sphere in which central banks in Europe, Japan and many OPEC and Third World countries hold their reserves the form of U.S. Treasury debt of declining foreign-exchange value; and
- a BRIC-centered sphere, led by China, India, Brazil and Russia, reaching out to include Turkey and Iran, most of Asia, and major raw materials exporters that are running trade surpluses.”
So the upshot of the Fed trying save the banks from negative equity is to flood the global economy with a glut of U.S. dollar credit, destabilizing the global financial system”
[ More evidence of destabilisation is given by Joseph Stiglitz (who won the 2001 Nobel Prize for economics) and who stated recently :-
“That [qe2] money is supposed to reignite the American economy but instead goes around the world looking for economies that actually seem to be functioning well and wreaking havoc there.”
Joseph Stiglitz, “Why Easier Money Won't Work,” Wall Street Journal, October 23, 2010]
Hudson goes on to say: -
“....U.S. banks are engaging in .....currency speculation, commodity speculation (driving up food and mineral prices sharply this year), and buying into companies in Asia and raw materials exporters.”
“Under current arrangements the dollars being pumped into the global economy are recycled back into U.S. Treasury IOUs.
When foreign sellers turn over their dollar receipts to their banks for domestic currency, these banks turn the payment over to the central bank – which then faces a Hobson’s Choice:
either to
- sell the dollars on the foreign exchange market
(pushing up their currency against the dollar), or - avoid doing this by buying more U.S. Treasury securities and thus keeping the dollar payment within the U.S. economy."
“These financial gambles are setting today’s exchange rates, not basic production costs.
In terms of relative rates of return, foreign central banks earn 1% on their U.S. Treasury bonds,while U.S. investors buy up the world’s assets.
In effect, U.S. diplomats are demanding that other nations relinquish their trade surpluses, private savings and general economic surplus to U.S. investors, creditors, bankers, speculators, arbitrageurs and vulture funds in exchange for this 1% return on U.S. dollar reserves of depreciating value....
The global economy is being turned into a tributary system, achieving what military conquest sought in times past.
[ In order to make the meaning of the above line more clear I include here another quote from Professor Hudson said on a radio program called "DEMOCRACY NOW" on Nov 05 2010.
"Well, the object of warfare is to take over a country’s land, raw materials and assets, and grab them. And in the past, that used to be done militarily by invading them. But today you can do it financially simply by creating credit, which is what the Federal Reserve has done"
This turns out to be implicit in QE II
Arbitrageurs and speculators are swamping Asian and Third World currency markets with low-priced U.S. dollar credit to make predatory trading profits at the expense of foreign central banks trying to stabilize their exchange rates by selling their currency for dollar-denominated securities – under conditions where the United States and Canada are blocking reciprocal direct investment”
“Hardly by surprise, other countries are taking defensive measures against this speculation, and against “free credit” takeovers using inexpensive U.S. electronic “keyboard bank credit.” For the past few decades they have stabilized their exchange rates by recycling dollar inflows and other foreign currency buildups into U.S. Treasury securities”
“But the most decisive counter-strategy to U.S. QE II policy is to create a full-fledged BRIC-centered currency bloc that would minimize use of the dollar.
China has negotiated currency-swap agreements with Russia, India, Turkey and Nigeria”
“A BRIC-centered system would reverse the policy of open and unprotected capital markets put in place after World War II.
This trend has been in the making since the BRIC countries met last year in Yekaterinburg, Russia, to discuss such an international payments system based on their own currencies rather than the dollar, sterling or euro.
In September, China supported a Russian proposal to start direct trading using the yuan and the ruble rather than pricing their trade or taking payment in U.S. dollars or other foreign currencies.
China then negotiated a similar deal with Brazil.
And on the eve of the IMF meetings in Washington on Friday, Premier Wen stopped off in Istanbul to reach agreement with Turkish Prime Minister Erdogan to use their own currencies in a planned tripling Turkish-Chinese trade to $50 billion over the next five years, effectively excluding the dollar.
China cannot make its currency a world reserve currency, because it is not running a deficit and therefore cannot supply large sums of renminbi to other countries via trade. So it is negotiating currency-swap agreements with other countries, while using its enormous dollar reserves to buy up natural resources in Australia, Africa and South America.
This has reversed the dynamics that led speculators to gang up and cause the 1997 Asia crisis.
At that time the great speculative play was against the “Asian Tigers.” Speculators swamped their markets with sell orders, emptying out the central bank reserves of countries that tried (in vain) to keep their exchange rates stable in the face of enormous U.S. bank credit extended to George Soros and other hedge fund managers and the vulture funds that followed in their wake.
The IMF and U.S. banks then stepped in and offered to “rescue” these economies if they agreed to sell off their best companies and resources to U.S. and European buyers.
This was a major reason why so many countries have tried to free themselves from the IMF and its neoliberal austerity programs, euphemized as “stabilization” plans rather than the economic poison of chronic dependency and instability programs.
Left with only Turkey as a customer by 2008, the IMF was a seemingly anachronistic institution whose only hope for survival lay in future crises. So that of 2009-10 proved to be a godsend. At least the IMF found neoliberal Latvia and Greece willing to subject themselves to its precepts. Today its destructive financial austerity doctrine is applied mainly by Europe’s “failed economies.””
“This has changed the equation between industrial-nation creditors and Third World debtors.
Many dollar-strapped countries have been subject to repeated raids on their central banks – followed by IMF austerity programs that have shrunk their domestic markets and made them yet more dependent on imports and foreign investments, reduced to selling off their public infrastructure to raise the money to pay their debts.
This has raised their cost of living and doing business, shrinking the economy all the more and creating new budget squeezes driving them even further into debt.
But China’s long-term trade and investment deals – to be paid in raw materials, denominated in renminbi rather than dollars – is alleviating their debt pressures to the point where currency traders are jumping on the bandwagon, pushing up their exchange rates."
"The major international economic question today is how such national economies can achieve greater stability by insulating themselves from these predatory financial movements.”
COMMENT
- What we have here is a description of a country - the USA - that is going around the world causing financial destabilisation (such as emptying out the central bank reserves of countries) thus forcing them to go to the IMF.
- We currently also have countries in Europe (such as Greece and Ireland ) which have been financially destabilised and forced to go to the IMF although we apparently don't know who caused that destabilisation.
Let me say that again in slightly different words.
Several countries in Europe have been financially destabilised and forced to go to the IMF - although nobody seems to know who caused that to happen. Simultaneously, (and at exactly the same time) the USA is going around the world financially destabilising countries and causing them to go to the IMF
Do you think - maybe - there might be some kind of connection?
I do. I think that it is the USA which is causing the financial destabilisation
Also - the main-stream media currently seems convinced that there is a "global economic crisis" - while simultaneously, there is a country going around the globe causing multiple economic crises. Do you think, maybe, there might be some kind of causal connection?
I do. I think that the most likely candidate for the cause of the global economic crisis is the USA.
To make my point even more clear and more more explicit - I think that it is the US which is causing the global economic crisis and the financial destabilisation that is being called "AUSTERITY." The US is causing it in Greece and also everywhere else including the UKI!!!
===============
Addendum 01
Russia, China and India forming a military alliance
What follows is extracted from:- Voice Of Russia http://english.ruvr.ru/2010/11/14/34127941.html.
It is about a military alliance between Russia India and China - three of the members of BRIC, the fourth one being Brazil.
"foreign ministers of Russia, India and China get together on Monday [Nov, 2010]. During the meeting in Uhan, China, "
"During President Dmitry Medvedev’s visit to Beijing in September the two countries’ leaders agreed on the need for the Asia-Pacific countries to reiterate the principle of the indivisibility of their common security in this generally unstable part of the world. "
"In Moscow, foreign policy expert Andrei Volodin believes that if the three ministers manage to reach a common stand on regional security, the meeting will have every reason to be called a success. He fears, however, that India’s apprehension towards China’s increasingly active role in the region may be a problem here."
....
"we will have every reason to hope that, working together, Russia, India and China will eventually be able to settle existing and future conflicts in the Asia-Pacific region."
....
"Just hours before the start of Monday’s meeting in Uhan, emergency response experts will get together in New Delhi to map out a set of joint projects for next year when Russia takes over the organization’s rotating chair."
===============
I interpret this as Russia, China and India forming a military and economic alliance against (military and economic) attack by the USA.
===============
ADDENDUM 02QE2 and the G20 - MORE ABOUT FINANCIAL WARFARE
taken from "Bernanke Defends Fed Monetary Policy, Blames China for Currency Tensions" by Barry Gray - Global Research November 23, 2010
"The most ferocious public attack on the Fed’s launching of “QE2” — the second round of quantitative easing — came from Germany, whose finance minister, Wolfgang Schäuble, earlier this month (Nov 2010) said the move was “undermining the credibility of US financial policy.”
Speaking on the eve of this month’s G20 summit of leading economies, held in Seoul, Schäuble went on to say the US “growth model,” based on “borrowed money” and an inflated financial sector, was in “deep crisis.”
He charged Washington with hypocrisy for accusing the Chinese of manipulating their exchange rate and then “artificially [depressing] the dollar exchange rate by printing money.”
Washington’s policy has also come under attack from a host of emerging economies, including Brazil, Thailand, South Africa, Taiwan and South Korea, whose currencies and asset prices are being driven up by waves of hot money stoked by the Fed’s printing presses.
At the G20 summit on November 11-12<2010>, the US failed to gain support from Europe, Japan and other Asian nations for a coordinated attack on China’s monetary policy, and was unable to push through a policy limiting current account imbalances to 4 percent of gross domestic product. (Under the US proposal, the only country that would be immediately targeted is China, whose surplus is above 4 percent of GDP).
The summit ended with a face-saving and vague communique that avows agreement on the need to rebalance the world economy, but commits no nation to do anything concrete about it.
===============
ADDENDUM 03
"China, Russia quit dollar"
China Daily November 24, 2010
China and Russia have decided to renounce the US dollar and resort to using their own currencies for bilateral trade, Premier Wen Jiabao and his Russian counterpart Vladimir Putin announced late on Tuesday (3/Nov/2010)"
===============
ADDENDUM 04
"BRIC is Now BRICS"
by Stuart Bramhall Z-Net Friday, Dec 31, 2010
(What follows are extracts from Mr Bramhall's article on z-net)
South Africa has now been formally accepted into the BRIC (Brazil, Russia, India, China) economic alliance.
....
The BRIC countries are not formally linked but have held summits and taken steps to boost financial cooperation and investment opportunities among them. There seems to be an unstated agenda of building a strong economic alliance to counterbalance the economic strength of the US and the European Union. Especially given the Americans’ belligerent approach to resource acquisition (via military domination),
....
According to China’s state news agency Xinhua, BRIC has accepted South Africa as a full member of the group. South African President Jacob Zuma was informed in a letter from Chinese President Hu Jintao in a letter of invitation to attend the third BRIC leaders’ summit, to be held in April 2011 in Beijing.
....
China has now publicly announced its willingness to back the euro by buying debt (i.e. making loans) to financially troubled EU countries, such as Greece, Spain and Italy, who are unable to afford the high interest rates Goldman Sachs and other bond holders want to charge them
===============
ADDENDUM 05
Ireland tries Quantative EasingWhat follows is from:- "Central Bank steps up its cash support to Irish banks financed by institution printing own money" Irish Independant January 15 2011.
“The Irish Independent learnt last night that the Central Bank of Ireland is financing €51bn of an emergency loan programme by printing its own money." .... .....
A spokesman for the ECB said the Irish Central Bank is itself creating the money it is lending to banks not borrowing cash from the ECB to fund the payments. The ECB spokesman said the Irish Central Bank can create its own funds if it deems it appropriate, as long as the ECB is notified.
Next is some maths from Financial News Network
"So let’s do the math: ICB “money printing” has increased by €40 billion. For a country whose GDP is about €160 billion, this means that Ireland has printed the equivalent of 25% of its GDP"
And there is an excellent analysis of the relevant law in the Financial Times:- The mechanics of Irish euro-printing
[Back to Main Index]
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