“How so? Breaking the law has now become a sort of routine”

In an interview with Die Presse, the former chief economist of the European Central Bank (ECB) discusses the latest decisions taken by this institution and asserts that from 2010 on, the ECB has given in to pressure from the outside (“Sie hat dem Druck von außen nachgegeben”). Asked about whether this pressure originated in the USA, he answered simply that it came from outside of Europe (“Druck von außerhalb Europas”).

Mr. Stark discusses the process by which the ECB, with the acquiescence of Euro zone governments has gradually loosened and finally broken its mandate, the preservation of price stability, and the huge inflationary dangers contained in its latest decisions, most specially the announcement on September the 6th of its Outright Monetary Transactions (OMT) program.

Zerohedge  comments the same interview: “…the former banker said what everyone without a PhD understands quite well: “The break came in 2010. Until then everything went well…”Then the ECB began to take on a new role, to fall into panic…. Together with other central banks, the ECB is flooding the market, posing the question not only about how the ECB will get its money back, but also how the excess liquidity created can be absorbed globally. “It can’t be solved by pressing a button. If the global economy stabilises, the potential for inflation has grown enormously… It gave in to outside pressure …pressure from outside Europe” Why, whichever bank headquartered at 200 West, NY, NY might he be referring to?”

At the end of the interview Mr. Stark, when asked about for how much longer can Germany oppose the ECB’s policies, answers: “The German Constitutional Court (GCC) has declared that the purchase of government bonds by the ECB [OMT program] collides with the rule that forbids state financing by the ECB. This leaves the Bundesbank in a conflicting position. A very difficult situation “:

Both the last question by the journalist and Mr. Stark’s answer are the most interesting part of the interview. The question goes like this: “How so? Breaking the law has now become a sort of routine”…

…and Mr. Stark’s answer: “…I would also see it this way: there is a continued collective breaking of the law”.

Advertisements

One thought on ““How so? Breaking the law has now become a sort of routine”

  1. Pingback: Ultra Vires ECB | The Yogi Rock

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s