Friday, September 9, 2011

The Just Released G7 Communique versus Reality

Following today's G-7 meeting of Finance Ministers and Central Bank Governors, the G7 issued a communique that, in part, said:
Central Banks stand ready to provide liquidity to banks as required. We will take all necessary actions to ensure the resilience of banking systems and financial markets.
For what it is worth relative to this statement, Ben Bernanke at the Federal Reserve is pumping money in near record amounts , with recent money growth at double digit rates (Three month through July at 15.6% annualized).

At the same time, in the eurozone, Jean-Claude Trichet at the European Central Bank is printing euros at a very low single digits (July annualized M2 at 2.1%), while countries and banks in the EZ teeter on the edge of collapse.

Anyone looking at these numbers has to conclude that the G7, Bernanke and Trichet are playing with us all. Is the real G7 strategy to hope that the EZ doesn't collapse before Trichet is replaced by Mario Draghi on 11-01-11? Do they want to take the EZ to the brink, or over it? Do they not have a plan? Relative to what is really going on, the G7 communique is a joke.

1 comment:

  1. Why does anybody pay back a bank loan?
    Only fools. The Greeks are NOT the fools!