Trichet statement

*DJ Trichet: Euro-Zone Govts Are Conscious Of Their Past Mistakes
*DJ Trichet: Efforts To Improve Governance Are Being Underestimated
*DJ Trichet: Ireland And Greece Are Solvent
*DJ Trichet: Euro-Zone Public Finances Compare Well With Japan, US
*DJ Trichet: Real Euro-Zone Economy Has Surprised Positively

As if he doesn’t know the actual analogy is with the US states.

This is shameless, bold faced intellectual dishonesty.

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7 Responses to Trichet statement

  1. All arguments with debt-hawks boil down to just two questions:

    1. Does the United States have the unlimited ability to “print” money? [Even debt-hawks agree it does]
    and
    2. Does “printing” money cause inflation. [It can, but despite an astounding 3,500% increase in debt since 1971, we are nowhere near the point where deficits cause inflation. See: http://rodgermmitchell.wordpress.com/2010/04/06/more-thoughts-on-inflation/

    Then you’re left with one of those silly “It-hasn’t-happened-yet-but-soon-will-happen” arguments. If you ask what is the evidence for that, you will be called names.

    Reply

  2. beowulf says:

    Hmm, The Eurostag controls Euro notes, but each EMU member still mints its own coins. So what happens if Ireland suddenly decides that what the every good boy and girl in Eire deserves for Christmas is a special 1000 Euro coin (delivered by merry elves disguised as postal workers)?

    A legacy of old national practice is the minting of silver and gold commemorative coins. Unlike normal issues, these coins are not legal tender in all the eurozone, but in the country where the coin was issued. For instance, a €10 Finnish commemorative coin cannot be used in Belgium.

    Despite this, these coins are not really intended to be used as mean of payment, so it does not constitute a serious problem.

    It is uncertain whether the Council of Ministers will grant them legal tender status elsewhere outside national boundaries, as San Marino, Monaco and Vatican City also issue these kind of coins.
    http://www.wordiq.com/definition/Euro_coins

    Reply

    beowulf Reply:

    “The coins are not legal tender in all the eurozone” is kind of silly as long as the Irish Central Bank stands ready to redeem the Irish Euro for a Euro Euro.

    A pity though that the Irish have no political influence or popular support in the United States or Congress could then lean on the Fed to treat all Euros equally in foreign exchange transactions. :o)

    Reply

  3. Andrew Wilkins says:

    They must learn from their mistakes and adhere to the eminently sensible policy of balanced budgets all round.

    They will then descend to a level of economic activity at which they can sustain a balanced budget. That will put Ireland somewhere neck and neck with Lesotho.

    [that's sarcasm .... or 'irony' for the US folks]

    Reply

    WARREN MOSLER Reply:

    right, the new ‘Lesotho is more’ strategy

    Reply

  4. “Ireland and Greece are Solvent.” So are California and Illinois, similarly monitarily non-sovereign. And please don’t worry about that iceberg ahead.

    Rodger Malcolm Mitchell

    Reply

    WARREN MOSLER Reply:

    yes, let us/lettuce not worry about that iceberg…

    Reply

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