House of Paine

procrustes ratchet: : euro zone s.o.p

 so when will it get
            so  brutally bad 
         inside that  monetary 
                     torture chamber over there
                     that a few of the members 
                                        start ripping  away ???
   


===============================================                                      


NYT


"FRANKFURT, Nov. 18 - 
The European Central Bank said Friday 
that it was poised to raise interest rates
 ending weeks of speculation
 about when Europe would join
 the United States in tightening credit" 



"interest rates, 
 have not been raised in five years 
or changed at all 
in the last two and a half years".



"Some believe that it will mimic 
the Federal Reserve 
by nudging up rates 
in multiple increments over the next year"



   The E.C.B.  believes 
the rate now 2 %
   has a   natural level  
                     around  3 percent 

                      pure hocus pocus 
 


so why ??

  since  at 2%

 We don't see  wage inflation pressure 

only spectral WARNINGS...


"rising inflation has 
to be monitored with "strong vigilance."

 as  board honcho Trichet sez repeatedly 

so what's the record ????

"In October
  the inflation rate 
in the 12-nation euro zone
 was 2.5 percent"

which iz 

" above the 2 percent threshold 
that the bank views as acceptable"

acceptable ????

here's a a nice recent  twist

germany 
the old bastion of hard money
  

           crying

             "keep it  loose"


"German officials have urged the bank
 not to raise rates
 as they struggle 
        to revive a long-dormant economy"


  the euro needs to set
            the rate at zero

                         and dive