The European Central Bank (ECB) is demurring like a coquette. They are flirting with the governments of Europe and with the People therein. On the one side, we have ECB President Draghi promising to ‘do whatever it takes’ to save the euro and on the other side, we have the same ECB president warning that the bank’s charter mandate forbids helping any struggling government. Which one is it, dear? Yes or no?
And at the same time, we have stock markets swooning upon the promise of more printed money, unlimited credit and negative (!!) interest rate loans to smaller banks, massive bank purchases of government bonds or bizarre financial maneuverings like the idea to make the bailout fund itself into a bank (imagine- a bailout fund is now a bank and the ECB can loan that new ‘bank’ unlimited funds which can then be loaned in unlimited amounts to governments in financial trouble. Thus, the ECB can lend, indirectly, to any country it wants- despite it’s mandate forbidding it from doing so!) The owners of businesses are also fine with kicking the can down the road- ANYTHING to keep them from going under today.
See, Americans, the ECB is more limited than our FED. It can’t just go around lending to Governments. Thus, they are limited in their ability to influence those governments. It can’t just print unlimited amounts of cash to lure the politicians and banking institutions of said countries. This means that governments & other banks can’t just call the ECB for more money (like the U.S.A. can do with the FED), thus kicking the can of debt down the road. Which is exactly why wise people limited the ECB charter when it was first created. The ECB is a private bank– just as the FED is (surprise!). These banks shouldn’t have the ability to buy our countries, Americans. They should have zero ability to print our money. They certainly shouldn’t be able to decide when & why to print money for a country as they are PRIVATELY held banks! Our elected politicians have zero say over what they FED & ECB do. No politician- including the president- can tell them to print cash or not print cash. They can’t tell them to higher interest rates or lower interest rates. Did you know that? These private banks (the FED and soon, the ECB) are gods in our countries. They own our money and what our money is worth. They tell every other bank how much each dollar is worth and what interest to charge for their loans. What other privately held company can tell a country how to manage its money?
Most people believe that the FED and the ECB are government entities that are beholden to the oversight and direction of our politicians. Not so. Unbelievable? yes, indeed. True? unfortunately, yes. They are just big, greedy banks that belong to big, greedy & unimaginably rich people (think: owners of many, many fabulous castles around the world).
Governments- and the politicians therein- know a decade in advance where they are going financially. And yet, when it comes to curbing their spending, they gasp in mock surprise and look for salvation from these privately held, corrupt banks. They sell their soul to them in their desperate attempt to be re-elected. No one cares what it means for the People of those countries- or for their children.
But this is just human nature, is it not? We should never have allowed the FED to print money, set interest rates for borrowing, have any control whatsoever over other banks or to have even one iota of power to affect government policies in the first place. Humans will be humans. If the option to kick the can down the road exists, then power-hungry politicians will take them. Therefore, we need to take the option away. Get rid of the FED and the ECB. The last thing we should do is give them more power.