I don’t think we should let this pass. Jens Weidmann, Germany’s representative on the governing council of the ECB and considered by most Germans (and their media) as a paragon of economic and financial wisdom, is quoted as saying, “Central banks, although they have the means, have no mandate, in my view, to safeguard the solvency of banks and governments.” Note that he refers to central banks in general and not only the ECB.
Frankly, I think Weidmann should sue the reporter who put these words into his mouth—obviously a crude attempt to make him sound like a yahoo who doesn’t know the first thing about his line of work.
Well, if they have no mandate, liquidate them.
ReplyDeleteLombard Street has not been translated into German yet?
ReplyDeleteI would be sure Weidemann said something of this nature.
ReplyDeleteECB as LOLR is where the entire question of legality hinges.
Forcing the freezing out of the cross border payments system (which is what LOLR removal means in Euro land) is 'constructive' expulsion imo. ECB has no legal basis, and no right whatever to precipitate deliberations of the EU political decision processes in this way.
Weidmann knows this, and is already flagging the propaganda he wants spread to counter the legal vacuum they and EU officials are operating under.
The ECB's working paper on EU/EMU withdrawal legal issues (2009) is a master work of disingenuous statements. Notably the total absence of ANY discussion of the ECB's legality under such circumstances, LOLR or anything else...
Talk about banking elites above the law... what better definition than a central bank with virtually no legal procedures pre-written?
https://www.ecb.europa.eu/pub/pdf/scplps/ecblwp10.pdf
Surely you people here realise that is was never a question of 'economics' argument - and certainly not in these last few weeks?
Rather, all about raw vested interest (Capital interest) Power politics. Majority citizens' interests have not been represented by any party throughout - with the recent exception of Syriza.
The 'threat of a good example' will never do!