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TheGonch wrote:
> The European Central Bank (ECB) is a truly independent central bank,
> even more so than the Fed. Its only mission is price stability -- it
> doesn't have the other economic goals that most advanced economies
> expect, like fighting unemployment. There is no political supervision of
> any kind -- no equivalent of AG appearing before Congress. Its minutes
> are not required to be published.
>
> No one knows if this kind of system can work. It has never been tried on
> this scale in history. The working asumption is that there will be
> problems, but that the focus of the ECB will be to keep rates low in the
> interest of price stability. Increased volatility and low interest rates
> usually means a weak currency.
>
> On the other hand, the lack of risk between Euro countries provies an
> incentive for companies to hold euro assets and liabilities. For example
> a multinational with a profitable subsidiary in Germany looking to build
> a new plant in Spain used to hedge both activities separately. Now the
> German profits can 'fund' the Spanish investment without any need for
> hedging currencies. Since hedging becomes easier, there should be more
> willingness to hold euro-denominated assets and make euro investments.
>
> Regards
>
> Dan Goncharoff
Dan, You compared the ECB to the US Fed, which is a privately owned for
profit corporation.
Who owns or controls the ECB and it is also organized as a for profit
organization? If you know the history of the US FED, you know about the
Warburg family and how the US Fed was part of their dream plan to control
the world's money. It would seem to me, that with the advent of the ECB,
Grandaddy Warburg would be very pleased. To paraphrase the Beatles,
"gettting closer all the time".
Before long, there will be one world bank controlled by a handful of
bankers. Ain't that a lovely thought?
Cynically,
Norman
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