Views: 10563|Replies: 13

US "demanded" from EU Central bank to print more Euros urgently. [Copy link] 中文

Rank: 8Rank: 8

Post time 2011-11-23 15:08:27 |Display all floors

America insists on speedy end to turmoil in eurozoneAmerica has demanded a "commitment of significant resources" from Europe to stem its debt crisis as the US announced a shock cut to its growth forecast.

By Louise Armitstead, Chief business correspondent
10:08PM GMT 22 Nov 2011



http://www.telegraph.co.uk/finance/financialcrisis/8908106/America-insists-on-speedy-end-to-turmoil-in-eurozone.html


Amid growing US impatience with European indecision, William Kennard, the American ambassador in Brussels, insisted on faster and more radical action.

The US Department of Commerce said America’s economy was slowing and would grow by just 2pc rather than the 2.5pc expected. A drastic drop in confidence was responsible, shown by the first fall in business inventories for two years. Analysts said the fact businesses were drawing on their reserves rather than ordering new stock was proof that the debt crisis was causing global concern.

Rob Carnell, an economist at ING, said the US data “will have come as a shock to markets”. He said: “It marks the first genuinely disappointing US data release for some time.”

Mr Kennard told reporters in Brussels: “There needs to be a firewall, a commitment of significant resources to deal with the problem.” He waded into the intensifying row over the role of the European Central Bank (ECB), on the side of France and Britain, rather than Germany.

He said the inability of the ECB to back the euro, in the way that the Federal Reserve stood behind the US economy in 2008, was a “fundamental difference in our structure”.

He said: “We are watching very intently what the ECB is able to do and the potential for it to do more.”

The warning came as the Federal Reserve said it plans to stress test America’s six biggest banks to see how they would withstand a potential meltdown of Europe’s financial system.
The tests on Bank of America, Citigroup, Goldman Sachs, JP Morgan Chase, Morgan Stanley and Wells Fargo will include “potential sharp market pricer movements in European sovereign and financial sectors,” the Fed said yesterday. The European examination for the six biggest banks is part of a broader annual stress test of the country’s 19 most significant lenders.
It was another turbulent day on global stock and bond markets. In the wake of Spain’s ruinously expensive debt auction, Italian 10-year bond yields soared to 6.91pc - just below the 7pc “bail-out zone”. After rising initially, stock markets fell. The Euro Stoxx dropped 1.1pc; Italy’s MIB and Spain’s Ibex fell 1.5pc each and Germany’s DAX dropped 1.2pc. In London the FTSE slid 0.3pc.
In late trading, the euro rallied against the dollar after the International Monetary Fund (IMF) unveiled a new credit line programme to support countries outside the eurozone hit by the debt crisis.
The IMF said the Precautionary Liquidity Line – which is strictly not for sinner states – would fund countries whose debt and spending levels are prudent but which have short-term funding problems. Christine Lagarde, head of the IMF, said: “This is another step toward creating an effective global financial safety net to deal with increased global interconnectedness.” The move is unlikely to calm markets for long.
“Europe’s sovereign debt problem is now chronic,” said analysts at Forex.com. They argued that the markets were rattled “because [in Europe] there is no 'lender of last resort’ or ultimate financial backstop in place in the currency bloc, the absence of which threatens its very survival”. They added: “While it may be glaringly obvious to the market that there is a vital missing piece of the eurozone jigsaw, Germany seems to be oblivious.”
Jens Weidmann, president of the German Bundesbank and an ECB policymaker,
said it was not the central bank’s job to finance public budgets. He told reporters that adopting a policy of quantitative easing – as in Britain and America – would be like drinking sea water to kill the thirst. “Whoever believes that the current crisis can be overcome by giving up crucial principles of stability orientation, pushing current legislation aside, is wrong.”
Defying the markets and a raft of economists, Mr Weid-mann insisted that Italy and Spain were strong enough to work out their own problems. “In both cases, I am confident that these countries need no outside help but rather that they can comfortably help themselves,” he said. “It is up to all of us to work against the general loss in confidence.
“Therefore, we must not limit our focus to short-term crisis fighting and nor should we adopt unseen proposals that have been developed for other currency areas,” he added.
But the “short-term crisis” looked like it was about to get worse as Portugal’s former finance minister warned that the bailed-out country could need a further €25bn (£21.6bn) to top up its €78bn rescue funds.
Carlos Pina, the treasury minister who negotiated the April bail-out package with European and International Monetary Fund officials, said that Portuguese companies were being cut off from capital markets funding in the same way that countries were, too.
Mr Pina told a conference: “There is a risk that the €78bn will not be sufficient. There may be a shortfall of €20bn to €25bn.”
Meanwhile, European officials were still refusing to disburse to Athens the €8bn tranche of its bail-out money. Jean-Claude Juncker, head of the Eurogroup of finance ministers, said he was optimistic that “within seven days” Lucas Papademos, the newly installed technocrat prime minister of Greece, would persuade the country’s politicians to commit to austerity demands so that money could be released.



Use magic tools Report

Rank: 8Rank: 8

Post time 2011-11-24 11:23:31 |Display all floors
The American Empire is proud of their FINANCIAL MINT capability.......

ha ha ha

Cheerios!

Green DRagon
Game Grandmaster

Use magic tools Report

Rank: 8Rank: 8

Post time 2011-11-24 13:51:51 |Display all floors
So true my friend , so true.

Use magic tools Report

Rank: 8Rank: 8

Post time 2011-11-25 11:05:30 |Display all floors
So, the 6th generation technology........

...........will enhanced DOLLAR REQUIREMENT, and so increase NON INFLATIONARY Minting power.
Gold is definately a threat, now that EURO has shown it's weakness. (dependence on the Global Banker, with Local Presence).

There is possibility to DOUBLE the American Dollar mint.
The game has MULTIPLE end results, and multiple routes depending on what each state does!
Very complex, mind numbing game!

Cheerios!

Green DRagon
Game Grandmaster

Use magic tools Report

Rank: 6Rank: 6

Post time 2011-11-26 03:47:51 |Display all floors
Jens Weidmann, president of the German Bundesbank and an ECB policymaker,
said it was not the central bank’s job to finance public budgets. He told reporters that adopting a policy of quantitative easing – as in Britain and America – would be like drinking sea water to kill the thirst. “Whoever believes that the current crisis can be overcome by giving up crucial principles of stability orientation, pushing current legislation aside, is wrong.”

I agree with the Americans about this. Inflation in the Eurozone  is low , and because the southern states cut spending and did Austerity measures, therefore in those countries there is deflation, harming the economy. If the EU continue this policy the Greek and Portugal economy will go bankrupt, and things will become worse.Finally the economic crisis will hit Germany and even his economy will contract. I know that printing money by the ECB and giving it to southern European countries is a wealth transfer , and that Germany wouldn't like this, but the other option is far more worse for everyone.

Use magic tools Report

Rank: 8Rank: 8

Post time 2011-11-26 11:09:51 |Display all floors
Pirate89 Post time: 2011-11-26 04:46
The printing presses are at working in US and its European allies ----- not productivity, efficiency ...
  1. China needs to gradually cash out its US Treasury Bonds and wean off US Dollar. So, it is very urgent for the Chinese government to internationalize Chinese Yuan ---- step by step with careful control.
Copy code

I think they already use Yuan in trade with some neighbours , i have read article about it few days and it seem to be growing number of transactions of that kind.

It take time but if you ask me i would say up to five years and it is done deal , Yuan will be new reserve currency.

Use magic tools Report

Rank: 8Rank: 8

Post time 2011-12-12 12:10:33 |Display all floors
attilaattila Post time: 2011-11-26 03:47
I agree with the Americans about this. Inflation in the Eurozone  is low , and because the southern ...

Your views, in my opinion is accurate.

The EU was trying to gain CHINA support to finance the Greek, or Southern Europe's economy.
With similar DEBT FORGIVENESS package once it reaches a certain "critical" level as per decided by consensus of the "market"!

The EU game plan shows the weakness of the EURO mint.
It does not have a EFFECTIVE WALL STREET approach to defend the EURO as what can be seen with the US$ design.

China has even JOINED the WALL STREET to defend the value of the US$.

Cheerios!

Green DRagon
Game Grandmaster

Use magic tools Report

You can't reply post until you log in Log in | register

BACK TO THE TOP
Contact us:Tel: (86)010-84883548, Email: blog@chinadaily.com.cn
Blog announcement:| We reserve the right, and you authorize us, to use content, including words, photos and videos, which you provide to our blog
platform, for non-profit purposes on China Daily media, comprising newspaper, website, iPad and other social media accounts.