The French Revolution in the heart of Europe – QE 1 is inevitable
Date: June 30, 2011 | Author: Mark Winter
The regulatory policy of the ECB is a complete affront for German Economists especially in regards to the independence of the ECB, but for Europe it's a blessing and we might even talk of a fiscal French Revolution, which Europeans have awaited so eagerly. The ice was broken when the ECB had bought Greek government bonds in March 2010, but the bond buying program for Italian and Spanish bonds is just the appetizer to rescue the Euro zone and to maintain the general financial stability in Europe and possibly worldwide. Speculators drive the political heads of the Euro zone in front of them, like wolves a flock of lambs, and every time a lamb is killed by the wolves, the next lamb is targeted and the ECB has to come up with bond purchase program for the troubled sovereign. This is crucial in this crisis, because otherwise we could bury the European project, and with it the longest peaceful period in the history of Europe would come to an end. The ECB is the only supra-national institution that has the ability to defend the Euro and the economies against the wolves like International hedge funds and other big speculators. Germany and especially Mrs Merkel and Mr. Schäuble should understand that this crisis can not be contained with nitpicking, but the only strong and determined action by the ECB. Why do the politicians in Berlin think that this financial and existential crisis of Europe would just pass by like a thunder storm, when countries like the U.S. and Great Britain were only able to contain the crisis by buying government bonds. It is high time that the European politicians get used to the political dependency of the European Central Bank, and take into account that a central bank does not act in a political vacuum. There is not much time left, the need for a European QE1 and QE2 has to come soon, so we as Europeans should not only trust in God but more in the vision and the political foresight of an ECB chief like Trichet. He is about to take the right measures and instruments in this crisis. Let Mr. Weber escape to Switzerland, to delight in a rock-hard Swiss franc, but the time will come, when Switzerland is knocking at the door of the Euro to become a member themselves. Ultimately, Germany, but perhaps also Switzerland will become a bit more European after the crisis and as such: Vive la Révolution!
