Fog in Venice
October 8, 2009 11:27am
by Ralph Atkins
http://blogs.ft.com/money-supply/2009/10/08/fog-in-venice/
Thick fog has this morning encircled Venice, where the European Central Bank is holding its interest rate setting meeting. No doubt it will add to the ECB’s feeling of not really knowing what is going on out there in the real economy. My own impression is that Venice is as busy as ever. The gondoliers certainly seem to be doing a good trade, but why are so many people wearing sunglasses? True, inflation pressures are firmly under control: I paid just €2 for a Cappuccino, which appears positively deflationary compared with Frankfurt prices. But heavy rain is threatened for the weekend, so maybe the ECB will have become more worried about excess liquidity… THE END

This blogger replies:

“But heavy rain is threatened for the weekend, so maybe the ECB will have become more worried about excess liquidity…”, says Ralph Atkins.

Indeed, this from the Introductory Statement:
Once the macroeconomic environment improves, the Governing Council will make sure that the measures taken are unwound in a timely fashion and that the liquidity provided is absorbed in order to counter effectively any threat to price stability over the medium to longer term.
http://www.ecb.int/press/pressconf/2009/html/is091008.en.html

Ron Paul’s “End the Fed” campaign is being promoted by the same Financial Times.

New monetary target
By Tom Braithwaite
Published: October 7 2009 20:47 | Last updated: October 7 2009 20:47
http://www.ft.com/cms/s/0/28db4010-b377-11de-ae8d-00144feab49a.html

In the question and answer session, the Governor said that at the G20, everybody was united.

So the ECB is united with the Fed.

We end the Fed.
The Fed is united with the ECB.
THEREFORE
We end the ECB also, quod erat demonstrandum.

Money is too important to be entrusted to bureaucrats.

Repeal legal-tender laws!

Let the market decide, but even the Adam Smith Institute in foggy London town doesn’t agree.
http://www.adamsmith.org/blog/tax-and-economy/the-fsa-and-bank-reserves-200910074238/

Robert Fisk: A financial revolution with profound political implications
Such large financial movements will have major political effects in the Middle East
Wednesday, 7 October 2009
http://www.independent.co.uk/opinion/commentators/fisk/robert-fisk-a-financial-revolution-with-profound-political-implications-1798712.html

Exclusive report by Robert Fisk
The demise of the dollar
In a graphic illustration of the new world order, Arab states have launched secret moves with China, Russia and France to stop using the US currency for oil trading
By Robert Fisk Tuesday, 6 October 2009
http://www.independent.co.uk/news/business/news/the-demise-of-the-dollar-1798175.html

At the very end of the question and answer session, the Governor said that since the setting up of the euro, he nor his predecessor have campaigned for the international role of the euro.

Gold will assume that role.

Ivo Cerckel
honestmoney@maktoob.com
http://twitter.com/ivocerckel/