"With the unemployment rate above 9%, Fed officials are reluctant to boost its target for short-term rates" reports the WSJ.com in "ECB's Trichet Extends A Hand to Portugal", July 7, 2011.
Today, while the Bank of England kept its rate unchanged, in spite of inflationary pressures (yet very low growth) plus a very high (No. 1 in the EU) May 2011 (compared to May 2010) industrial producers prices hike, the European Central Bank raises its basis rate for a second time in 3 months. from 1.25% to 1.5%.
It seems that the Eurozone urgently needs a different central bank!!! One eg that, lie the Fed, cares about employment as much as it cares about inflation. The ECB seems too "dependent" on Bundesbank's preoccupation (or should one call it obsession) with inflation.
Note: While the Fed & the Bank of England have kept their recession rates of 0%-0.25% & 0.5% the ECB has raised its rate frm 1% to 1.5% in 3 mo
Thursday, July 7, 2011
World Dynamics: Mind the B Scenario!
Those who are banking on China (now a communist capitalist system) becoming a democracy via its economic dominance should also mind scenario B: EU & US become communist instead.
As for the EU, forcing EU (Eurozone) member states to rely on Chinese investment is critical undermining of the future of Europe not only the EU/Eurozone. Europe solve your problems (yet today's ECB decisions do not look promising to that end).
As for the EU, forcing EU (Eurozone) member states to rely on Chinese investment is critical undermining of the future of Europe not only the EU/Eurozone. Europe solve your problems (yet today's ECB decisions do not look promising to that end).
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