Thursday, 13 September 2012

Starting to Froth at the Mouth

The media, particularly the English-speaking media, are becoming faintly insulting in their repeated suggestions that only the German Constitutional Court ruling on the ESM has prevented the European Central Bank from overstepping its mandate.

As Mr Schaeuble (reported in Bloomberg) remarked:  the German court’s decision has not limited the ECB’s power to buy bonds,  its mandate does that. “There is no doubt” the ECB is holding to its independent mandate and there is no reason to assume it will overstep that. 


Nomad said...

I have just bought another Monopoly set - the extra notes in the second box will come in handy! If I need more, the man in the toyshop assured me he would be able to provide them at reasonable cost. I feel much better knowing that....

hatfield girl said...

I've just made 20,000 euros in the last week in terms of sterling and dollar value of my liquid assets. The share portfolio is looking jollier too.
I always get puzzled playing American Monopoly because who knows the value of anything on the board?

I am assured, Nomad, that the local Monopoly money will not percolate through the system to finance household and company expenditure; it will remain idle in banks' balance sheets re-lent to the ECB, being sterilised, without danger of inflation, until the next LTRO.

But in real economy, HG terms, I'm just thrilled to see my current account back home safely.

Nomad said...

Ha! Me too HG. I did a spot of forex trading last week and now have enough sitting around to cover the next 12-18 months or so without the need to enter the markets again. Agree with you - it is a pleasant feeling to get something just right for a change!.