Weber: ECB May Nearly Double Its Key Interest Rate in 2011

Do you want to see the dollar get crushed and more crises in the land of the PIIGS? It may happen sooner than you think.

Apparently the European Central Bank money manipulators have determined that is may be time to nearly double the ECB's key interest rate.

ECB policymaker and Bundesbank president, Axel Weber, told reporters yesterday, according to Reuters, that

the ECB would exercise "strong vigilance" over rising inflation, deploying a phrase that in the past signaled a rate rise was only a month away.

Weber said price risks were "clearly to the upside" and there was a "genuine risk that inflation will stay higher than is advisable and tolerable for some time. So I think the fact that the ECB signaled strong vigilance is the right answer."

Asked if he was comfortable with market expectations that ECB rates will rise from their current record low of 1 percent to 1.75 percent by year's end, Weber replied: "I wouldn't do anything to try to correct market expectations at this point."

"I don't want to correct them," he added.

There is no question that money printing across the globe, including by the ECB, has caused climbing price inflation, but these mad manipulations of the money supply are just as mad. Any such tightening by the ECB will rock the EU economy and bring the PIIGS closer to the brink of bankruptcy. Then what will the ECB do, start printing money again?

Governments of all kinds really need to be out of the money printing business. The government money manipulations only result in unstable roller coaster economies that damage the finances of the average citizen. It's time people across the globe wake up to this fact.