Many observers believe that the only way out for the Eurozone is for the European Central Bank to become a lender of last resort. Jean Quatremer quotes Marco Kranjec of Slovenia, a member of the ECB Board of Governors, saying that bank is "flexible" and will go "as far as necessary." He does not, however, quote Bundesbank president Jens Weidmann, also a member of the BoG of the ECB, who warns that the bank absolutely must not become a lender of last resort: it's not only wrong, it's illegal, Weidmann says. And Mario Draghi, the new head of the ECB, says that the LOLR role is "not the bank's job."So we have an impasse, with time running out.
For those who like their doom and gloom leavened with math, here are some numbers.
Sunday, November 13, 2011
Jean-Luc Mélenchon isn't an authority I would recommend for learning economics, but he's great for expanding your French vocabulary:
"D'un côté, François Hollande décide tout seul qu'il continue le nucléaire ; de l'autre côté, des gens catégoriques disent 'il faut sortir du nucléaire'. Puis on s'aperçoit qu'ils échangent des centrales nucléaires contre des circonscriptions. Tout cela sent beaucoup la carabistouille."To the dictionary:
Carabistouille, s.f,: Belgicisme. Calembredaine, galéjade. S'emploie surtout au pluriel (cf. H. Baetens Beardsmore, Le Français régional de Bruxelles, 1971, p. 400).He also characterized Hollande as "the captain of a pedal boat," not a vehicle to turn to in a storm.