French Head of State pledged in European Parliament the € to join a downhill race between the manipulated $ and ¥.
For Dutch readers, ‘Modern French Colonialism in Europe: http://www.volkskrant.nl/vk/nl/6277/Paul-Brill/article/detail/3391235/2013/02/09/Paul-Brill-Europa-als-pijnstiller-voor-Franse-kwalen.dhtml
France played in the past a significant role in trying to force the ECB into a political tool. Now French President Hollande does it again by suggesting to introduce ‘flexible’ exchange rates for the Euro. In fact Hollande pledged in the European Parliament for more Euro’s from the printing presses of the ECB for ‘Euro-land growth’. More Euro’s to counterfight the economic consequences of a high euro exchange rate, mainly caused by a deflated Japanese Yen and uncertainty about the American economy and the possible consequences of the Fiscal Cliff.
Hollande’s pledge implied also subjecting EUro-land to additional inflation, sparkling valuta speculations, effecting devaluation of saving accounts, decreased buying power and a range of increasing economic and social costs. Hawkish opponents sometimes naming inflation ‘legalized robbery’. The most welcome side effect for politicians a gradual devaluation of public debts. Not to speak over a possible new mandate for the ECB.
More freshly printed Euro’s to ease increasing pressure on noncompetitive EUro-land economies because of the high Euro exchange rate. Hitting the sensitive, hardly competitive French econonomy in particular. A pledge seconded by monetary piggyback riding on the resources of the worldwide competitive German economy. At the same time knowing, should his pledge be rewarded, boosting a looming currency war with additional highly explosive, unstable ingredients from an EUro-land in political, financial and economical turmoil.
By the way, a biased pledge by a Head of State, equipped with political powers, pledging in the European Parliament. Other countries have to do with their Prime Ministers. Both Hollande and the Parliament not allowed to mingle in the monetary politics of the ECB.
The logic of it difficult to explain to Simplified and Enhanced, Resilient EUro-land citizens, supposed to participate in ‘to build a vision of how the EU should be in 2020.‘ As it is also impossible to explain the logic how ‘two of a kind’, ‘2+2’, or ‘2*2′ can end up anywhere between 2 and 22. Be it a multiplicator in financial markets or even a seat number 22. The latter, however, in this case occupied by Barroso, who not so long ago linked the Greek debt crisis to the post World War 2 Marshall aid, undoubtedly informed about Hollande’s intentions:
Amidst political, financial and economic turmoil, meanwhile lasting about half a decade in vulnerable EUro-land with 11 currencies to speculate with -Wow!-, joining a monetary downhill race between manipulated dominating valuta’s creating billions, billions and billions of fictional euro’s.
A ‘High five’ for the creditability of EUro-land.
Valuta speculation: Black Wednesday
World economy: http://www.project-syndicate.org/commentary/lessons-from-davos-by-joseph-e–stiglitz
Valuta war: http://www.faz.net/aktuell/finanzen/devisen-rohstoffe/devisenmaerkte-das-ringen-gegen-den-waehrungskrieg-12041195.html
Banks, ECB: http://www.presseurop.eu/nl/content/news-brief/3369911-2000-nieuwe-banen-voor-de-ecb
French nationalism: http://www.presseurop.eu/en/content/news-brief/3372031-hollande-stands-alone