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REHN SAYS ECB’S MAIN OBJECTIVE IS PRICE STABILITY

Posted by WARREN MOSLER on November 23rd, 2011

Didn’t say ‘only’ objective. Subtle shift?

BN 11/23 15:59 *REHN SAYS ECB’S MAIN OBJECTIVE IS PRICE STABILITY

19 Responses to “REHN SAYS ECB’S MAIN OBJECTIVE IS PRICE STABILITY”

  1. Tom Hickey Says:

    Do they think that b rising bond yields across the EZ (including now Germany) must indicate inflation?

    Just where else do they see inflation when the EZ is facing a debt-deflationary spiral? What am I missing here?

    Reply

  2. Matt Says:

    Warren, if you have time, can you please comment on this, from Paul Craig Roberts?
    ——————
    The day prior to Thanksgiving also brought another extraordinary development–the failure of a German government bond auction, an unparalleled event.

    Why would Germany, the only member of the EU with financial rectitude, not be able to sell 35 per cent of its offerings of 10-year bonds? Germany has no debt problems, and its economy is expected by EU and US authorities to bear the lion’s share of the bailout of the EU member countries that do lack financial rectitude.

    I suspect that the answer to this question is that the failure of the German government’s bond auction was orchestrated by the US, by EU authorities, especially the European Central Bank, and private banks in order to punish Germany for obstructing the purchase of EU member countries’ sovereign debt by the European Central Bank.

    The German government has been trying to defend the terms on which Germany gave up control over its own currency and joined the EU. By insisting on the legality of the agreements, Germany has been standing in the way of the ECB behaving like the US Federal Reserve and monetizing the debt of member governments.

    From the beginning the EU was a conspiracy against Germany. If Germany remains in the EU, Germany will be destroyed. It will lose its political and economic sovereignty, and its economy will be bled in behalf of the fiscally irresponsible members of the EU.

    If Greeks will not submit to the tyranny, why should Germans?

    Reply

    WARREN MOSLER Reply:

    Not the way I see it

    Reply

    Save America Reply:

    @Matt, Matt, is a unified europe ultimately a bad thing? If so why should any US state have given up sovereignty, why shouldn’t we bust the 50 states up into seperate nations, with thier own currencies, languages, etc etc? And floating FX between the 50 states currencies? What idiots ever thought 50 united states under a federal government and US treasury was a good idea? Maybe it didn’t even have to go that far, just letting the north and south have 2 seperate countries would have been enough, who did lincoln think he was reuniting the nation? The north could have remained an industrial powerhouse with thier yankee currency, and the south could habe remained agricultural with their confederate currency, this would have been better right?

    Reply

    Save America Reply:

    @Save America, For that matter who did kennedy think he was, certainly all black and all white schools would have been better, today we will declare alabama a white nation with thier own currency, texas can become a latino nation that speaks spanish with thier own currency, new york everyone can learn the national new york language of italian. When unemployment hits new york nation, those italian speakers gonna have a rough time immigrating to the nation of alabama where there may be lots of jobs, why a white english speaking alabaman baptist gonna hire a dark italian speaking catholic? Won’t happen.

    Reply

    Talvez... Reply:

    @Save America,
    The US did not start as 50 states, each one with its language currency, etc.

    Ultimately, a unified Europe is a bad thing because Europeans don’t want it. In democracy, that is usually enough.

    Reply

    Save America Reply:

    @Talvez…, Southerners didn’t want things either in the US, many still don’t, but lincoln forced it on them, why couldn’t they remain free to work thier slaves on the plantation? Later on this national entity (USA) was able to help france beat back the germans, did the end justify the means? As unemployment rises in a place, and there is no labor mobility, perhaps soldiers will cross borders instead. Would WW1 or WW2 have happened if 150 years ago there had been a united states of europe? If freedom to remain german and italian leads to ww3 and kills all humanity, will the surviving cockroaches eulogize we were noble because we didn’t force some issues? Is it better for humanity to die as free democracies than to survive in this universe as slaves? You raise some interesting memes, if people are not bright enough to realize that certain uncorrected ignorance will be thier and all of our deaths, as Mcnamara predicted, should we just let that play out and let them be FREE and not force issues? Founding fathers said it was better to die free than live a slave. So I am with you talvez, better to let germany and italy and others remain free, the conflicts to continue and grow, probably resulting in nuclear ww3 and the end of all life on planet earth, than to live as slaves!

    Check this out Talvez:

    http://www.businessinsider.com/woman-pepper-sprays-black-friday-shoppers-to-keep-them-away-from-merchandise-she-wanted-2011-11

    Human Beings are really scary animals sometimes – LOL! Might as well set the nukes off now, why wait? ;)

    Save America Reply:

    @Talvez…, Talvez you have really raised some good memes, I can’t help but playing out many scenarios on them that you inspired. One of my recent girlfriends is addicted to oxycodone, she is certain to die soon from this addiction, has 2 babies. Now she wants to know why she can’t build a meth lab and have free unfettered access to all the oxycodone she wishes to consume. I say well it will kill you dear, she says so, at least I will have lived doing what I wanted and been happy til the end, my life is my choice, not yours. Her babies pick up these pills sometimes and consume them, 1 I think is now addicted, and certainly will die in momma’s footsteps, who are we to intervene in that situation? The babydad tried to intervene, cause he wanted the kids to live, but she said NO, I suffered for 9 months to make those babies, you can’t have them. Who are you Talvez to tell my ex girlfriend she can’t kill herself and her babies with her love for free oxycodone? She is a beautiful 23 year old, she says my problem is I want to live forever and value number of years on this planet too highly, that I should be more like her and value quality of life more than length of life. She says if I would just take 1 oxycodone pill and become addicted to it like her, I wouldn’t want sex anymore. (which was the reason for our breakup, I still wanted it and she didn’t, cause her pill high she says is 100 times better than orgasm)

    If people want thier heroin and oxycodone and their babies get addicted to it too, why are there so many laws limiting thier freedom?

    If religious nuts who want to blow up the whole world want a nuke, who are you to stop them? Let them be free. It is better to die free, than live a slave. If germans and italians want to be seperated, what does it matter the other 6.8 billion who they have to share the planet with wants?

    Talvez... Reply:

    @Talvez…,
    I did not understand your comparison. Are you saying Europe should unite itself otherwise it won’t be free? Or that being free equals starting a war?

    Modern times aren’t times of war. Not because there is a new Pax Romana (but called EU instead), but because there is free trade amongst the people.

    Your proposition that France, Italy and Germany are not in a Union, then there will be war is a non-sequitur, put simply.

    WARREN MOSLER Reply:

    But a single currency can work if the issuer makes ‘fair’/per capita distributions to the member govs to support add demand as needed

    Save America Reply:

    @Talvez…, Talvez, many people long ago decided 2 world wars (initiated in europe) was enough and something had to be done. That indeed a divided europe could be the end of the world. The USA has many problems Talvez, but I just spent 7 months all over europe and there are a lot of very unhappy people in many places there. The civilization there is descending, not ascending. My mother said it is a far cry from the europe she experienced in the 60′s and 70′s. Why is there so much graffiti everywhere over there? Why couldn’t I find free bathrooms or free water fountains almost anywhere over there? (which are prevalent almost everywhere I go in the USA?) The racism was so extreme in some places it would make my southern ancestors blush. In many places I couldn’t walk unmolested without drug users and alcholics constantly pestering me. I was with some nasa guys, scientists, some originating from europe, I think the consensus was that opportunity in the USA was better than Europe and they wanted to return to USA. You didn’t address many of my other points about why shouldn’t the USA break up into many nations and why was forcing her unification OK by president lincoln when the people didn’t want it. I remember the previous Govenor of Alabama saying to Governor George Wallace, a leader LEADS his people, he is not merely a reflection of his people. He warned governor wallace about reflecting the hatred and racism of his constituents, mirroring thier hates and fears, but instead to lead them into the future. Many years later Govenor George went to this guy and cried and said he wish he would have listened and leaded his people into prosperity, instead of tearing his sheep apart reflecting their emotions. Europe needs some real leaders, not these losers like strass khan and berlusconi who can’t keep their peckers in thier pants. I was in croatia visiting the tesla museum, the guy that invented our AC energy system and many other things, he cut off his balls so he could do good things for humanity, that is a leader who understand sacrifice.

    Save America Reply:

    @Talvez…, PS most of those nasa guys have decided their kids need to learn Mandarin.

    Talvez... Reply:

    @Talvez…,
    Maybe you should learn a thing or two about the EU:
    1. It’s member states have less autonomy than the US states
    2. When the euro was introduced, prices doubled here.
    3. Guess what? In 1974, when we had the Carnation revolution, policemen didn’t have to steal to feed their families, in 1986, when we entered the EU, policemen didn’t have to steal to feed their families. Yet here we are, many policemen have to steal food, others just commit suicide.
    4. If you found racism in Croatia or other countries in the region, it’s no wonder – that is the result of the failure of older forced unifications, or have you forgotten the result of Checoslovakia, Yugoslavia, and other descendants of another forced unification that was the Austria-Hungary empire.
    5. I won’t be saying what should the US states do, because I’m not an American and I don’t know much of your history.

    The EU is like a political party – in the elections we were promised prosperity, solidarity, growth and stability. We have seen none of those things so far. Were there used to be thriving fishing communities lay empty towns, result of the fishing quotas; were there used to be meadows full of crops lay empty fields, fruit of the Common Agricultural policy. Distilleries used to abound in rural villages, the EU decided that we did not have the conditions to produce it.
    One, very good example, is a sugar processing plant. We built a great processing plant, the best of its kind in Europe, with a great productivity (it even received an award). Farmers were rallied across miles and miles to produce sugar beat. It all worked out well, until the EU cut the sugar quotas. Farmers lost their investments and the processing plant now works with imported sugar.
    The EU has been a disaster so far – what makes you think that it will be better from now on?

    MamMoTh Reply:

    @Talvez…,

    1. It’s member states have less autonomy than the US states

    I doubt it. Care to give some examples?

    Farmers were rallied across miles and miles to produce sugar beat. It all worked out well, until the EU cut the sugar quotas.

    Which quotas? Agriculture in the EU is largely subsidized. Cows receive more than a dollar a day in subsidies, which is more than the income of billions of people around the world.

    Talvez... Reply:

    @Talvez…,
    1. The US states have budgetary freedom.
    The US states don’t have production quotas (afaik). From my understanding, each state can have their own laws regarding most affairs, like transportation, I remember California has stricter greenhouse gas laws. But if you’re American, surely you can enlighten me if you have such thing as an whole bunch of directives concerning each and very characteristic of tractors, uniformised hairdressing certificates, minimum requirements on an array of fruits and vegetables or even uniform noise limits. These are just some examples I bumped into – it’s very likely there are more uniformised things, but those are the ones I checked myself.

    2. Which quotas? Sugar quotas, obviously! Sugar quotas are expected to be abolished by 2016, but:
    a)Damage is done already
    b)Other quotas remain

    Save America Reply:

    @Talvez…, Yugoslavia – I am reading this book right now – fascinating http://www.amazon.com/Yugo-Rise-Fall-Worst-History/dp/0809098911 Want to know how to double the price of a yugo – fill it up with a tank of Gas. LOL! This book is great! Certainly the MT900 folks here would like to read about car history from yugoslavia. My croatian friend always made sure to tell me he was from the resort side of former yugoslavia, not the goatherder side where the YUGO was made, LOL! I think I am gonna buy a YUGO as a collectors item. Anyways listen to this since you bring up agricultural memes : http://www.financialsense.com/financial-sense-newshour/guest-expert/2011/11/23/kristin-canty/farmageddon-the-unseen-war-to-shut-down-american-family-farms

    Darth Vaders are everywhere, eu and usa, farmers in china too are bitter about land seized by the government, there are people where I am at in florida freaking out about UN Agenda 21 – google it. When I was in ireland, the farmers there were scared to death of the EU breaking up, they all said without the subsidies they will perish. One irish sheepherder told me the family farms in ireland are dying, his was the last generation that did the farm work, all his kids are in foreign countries as engineers and teachers. He said the peet was running out and worse the fresh water scarcity was going to cause war in the near future. I talked to a former policeman in scotland, he echoed your concerns. He said the scottish national party took over and is going to push a referendum to get scotland out of the UK so they can keep all thier north sea oil. My poolman in florida used to be a police man in London, said he had to get out of there, no opportunity for him or his family. Now says the same thing about florida but he says he has accepted it doesn’t matter where he goes now, the whole world is going down the drain! LOL! Warren says this site is growing, and I guess he wants lots of growth for this site. We can take all these bored unemployed people and all of us show up here and talk back and forth, growth is always good no? :) occupy moslerconomics…. (how many people here are ready for the moslerconomics bowling alley to get inundated with streetbums like me? who may upset the ZEN that was obtained by limited numbers of people coming here? – walter and the dude are over in the corner talking about score at the bowling alley but the place is filling up :)

    Talvez... Reply:

    @Talvez…,
    You seem to keep pushing the “memes”. I don’t understand what you mean by that.
    I live in the Eu – and if you want a nice example of how the EU isn’t working just look at the latest news from here! Barroso’s last proposal included fines to bankrupt countries. The next time you see a beggar, just fine him for occupying the public space! lol

    Growth is always good, and growth is what we are not having.

    Save America Reply:

    @Talvez…, PS talvez you bring up “hairdressing certificates”, I used to talk with dan loeb of third point capital and others about zimbabwe inflation, the consensus of the group was that gold was a good thing to own as a zimbabwean back in the day. One breadmaker there talked to us and said he wished he had been a hairdresser instead of a breadmaker, they had 2100% increases in prices of hairdos that was able to be passed on to the customers. Wether a society is thriving or dying, a girls gotta have her hair done! Even before she feeds her belly! LOL! What was that old commercial, image is everything…. http://www.youtube.com/watch?v=T2kCWSMqWik

    Save America Reply:

    @Talvez…, http://www.youtube.com/watch?v=5wXhUqjHUQg&feature=related the original to give you context, image is everything right? lol!

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