Hyper-inflation at any icost.

In his book “The Birth of the euro”, (Cambridge University Press, 2008), Otmas Issing, former European Central Bank (ECB) chief economist argues on p. 146
that inflation expectations can only remain durably anchored at the level of the central bank’s target, if there is absolute confidence that monetary policy will take whatever action is necessary to avoid missing the target.

In the video promotion of the book of 16 September 2008 by the Daily Telegraph, Issing argues that central banks will do whatever is necessary to stabilise the system. (1)

On 04 October 2008, the European Union (EU) Masters said that they will do whatever is necessary to ensure the soundness and stability of “our” banking and financial system.
http://www.reuters.com/article/newsOne/idUSTRE49267J20081004

At the Group 20 nations summit on 15 November 2008 in Washington, our Masters confirmed that they will only take whatever further actions are necessary to stabilise the financial system within its straitjacket of worthless digital liquidity. (2)

The Fed will do whatever it takes to fight against deflation, says the Financial Times, this morning.
http://www.ft.com/cms/s/0/41729a96-b63a-11dd-89dd-0000779fd18c.html

In normal times, deflation means bankruptcies which make the system healthy again.

At present, bankruptcies would mean total economic collapse.

Our leaders will never allow this.

At present, the sheeple are flying to the USA dollar.

This results in the USA having to emit more worthless digital liquidity.

This cannot but lead to hyper-inflation which will replace the present deflation.

This is the only possible result.

Hence, this cannot but be solved through a devaluation of the USA dollar.

And now they want the Gulf States to throw money at USA automakers?

Has somebody gone insane?

The art of economics consists in looking
not merely at the immediate
but at the longer effects of any act or policy;

it consists in tracing the consequences of that policy
not merely for one group
but for all groups.

(Henry Hazlitt, 1946
http://jim.com/econ/chap01p1.html )

Ivo Cerckel

NOTES

(1)
ECB doyen Otmar Issing calls crisis "extremely dangerous"
By Ambrose Evans-Pritchard
Last Updated: 7:00pm BST 16/09/2008
http://www.telegraph.co.uk/finance/economics/2975079/ECB-doyen-Otmar-Issing-calls-crisis-extremely-dangerous.html

(2)
G20 declaration
http://www.whitehouse.gov/news/releases/2008/11/20081115-1.html
SNIP
7. Against this background of deteriorating economic conditions worldwide, we agreed that […] we will:
Continue our vigorous efforts and take whatever further actions are necessary to stabilize the financial system.