For the past week or so, Trichet and the various governments of the Eurozone have decided to plot the murder of the Euro, and to celebrate that with hyperinflation in order to revive the stock markets from its due correction.
Here's a small non-exaustive list of what they have done (or not done) in order to kill the Euro:
- Trichet didn't raise interest rates while inflation was already 150% above his targets.
- Trichet droped interest rates to avoid a collapse of the USD, and hence decided to sacrifice the Euro to save USD. I didn't know that the ECB's job was also to prevent the collapse of the USD.
- EU Nations Commit 1.3 Trillion Euros to Bank Bailouts, that is more than 250% of the bailout package of the US, which was already outrageously enormous.
- Fed Lets Europe Central Banks Offer Unlimited Dollars, Removes Swap Limits."The European Central Bank, the Bank of England and the Swiss National Bank will offer European banks unlimited dollar funds with maturities of seven, 28 and 84 days at fixed interest rates". I am trying to make sense of this.