Central banks of Europe, please listen !

Call a halt to monetary hyper-expansions.

The Bank of England, Sweden’s Riksbank, the European Central Bank and others have meetings today where they will decide the level of interest rates.

Interest rates are not the price of money. Interest rates are the price spreads between the stages of production.

Influential voices are calling on central banks to be bold in cutting interest rates today, says the Financial Times this morning.
http://www.ft.com/cms/s/0/4bd8c730-c16b-11dd-831e-000077b07658.html

The degree of indebtedness has however resulted in confidence disappearing from the markets.

Will zero interest rates bring confidence back?

The monetary hyper-expansions have not yet resulted in price-inflation because many of the digital currency units have been sterilised through trillions of derivatives.

The dollar financial industry is always in need of ever lower interest rates because it needs ever more money in order to keep its murderous comedy alive.

It is this maladministration of its reserve-currency status by the dollar regime which has caused the present crisis.

Interest rates are no longer the price spreads between the stages of production. They are now the ever lower price of digital liquidity the dollar regime needs in order to (financially) destroy this planet.

The Times carries two contradictory articles this morning.

One by Anatole Kaletsky in which it is being argued that dramatic interest rates can shift the economic paralysis. (1)

And one by David Wighton in which it is being argued that cutting interest rates is not going to increase the quantity of credit available because the mechanism that turns the cuts is broken. (2)

If as Wighton argues, the mechanism is broken, how can Kaletsky then argue that dramatic interest rates can repair the mechanism? (2)

The root cause of the economic downturn is the credit crunch, writes Wighton.

Why does Wighton not elaborate on the causes of the credit crunch?

Is the credit crunch an Act of God?

Or was the credit caused by worthless digital liquidity and fraudulent fractional-reserve banking?

No for Wighton, it is not necessary to inquire into the causes of the credit crunch.

Both worthless digital liquidity and fraudulent fractional-reserve banking deny reality.

Does Anatole Kaletsky really think that dramatic interest-rate cuts will bring the financial system back in line with reality?

Ivo Cerckel
Siquijor, 04 December 2008

NOTES

(1)
Irresistible financial force will prevail
Anatole Kaletsky
http://www.timesonline.co.uk/tol/comment/columnists/anatole_kaletsky/article5282306.ece
Economic paralysis seems like an immovable object. But dramatic interest rate cuts can shift it

(2)
Rate cuts won’t fix broken mechanism
David Wighton, Business Editor’s commentary
http://business.timesonline.co.uk/tol/business/columnists/article5282819.ece
Cutting interest rates is not going to increase quantity of credit available – the mechanism that turns the cuts is broken