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Euro Builder Ends His Career on a Bitter Note
NYT ^ | 08/05/11 | JACK EWING

Posted on 08/06/2011 3:47:18 AM PDT by TigerLikesRooster

August 5, 2011

Euro Builder Ends His Career on a Bitter Note

By JACK EWING

FRANKFURT — Jean-Claude Trichet, the president of the European Central Bank, has spent much of his career building and defending the euro. But now, in a bitter twist, it looks as if his career may well end with the common currency in shambles.

Mr. Trichet, 68, will retire at the end of October after an eight-year term. Yet markets are crashing, bond investors have turned on Italy and Spain, and it appears certain that when Mr. Trichet returns to civilian life on Nov. 1, the European sovereign debt crisis will be far from resolved.

Indeed, the euro area threatens to become the epicenter of a global financial crisis to rival the one that followed the collapse of Lehman Brothers in September 2008 — a horror sequel that Mr. Trichet himself has said the world cannot bear.

“Our democracies would not be ready to provide once again the financial commitments to avoid a great depression in case of a new crisis of the same nature,” he told an audience in Madrid in May.

(Excerpt) Read more at nytimes.com ...


TOPICS: Business/Economy; Foreign Affairs; News/Current Events
KEYWORDS: debtcrisis; ecb; euro; europeanunion; trichet

1 posted on 08/06/2011 3:47:27 AM PDT by TigerLikesRooster
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To: TigerLikesRooster; PAR35; AndyJackson; Thane_Banquo; nicksaunt; MadLibDisease; happygrl; ...

P!


2 posted on 08/06/2011 3:48:20 AM PDT by TigerLikesRooster (The way to crush the bourgeois is to grind them between the millstones of taxation and inflation)
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To: TigerLikesRooster
In any economic crisis, it is axiomatic that bad money drives out good.

Euros were always a phony currency and withing two years when the EU collapses every one will revert to their historical currencies. Euros will be wall paper.

3 posted on 08/06/2011 3:56:53 AM PDT by Jimmy Valentine (DemocRATS - when they speak, they lie; when they are silent, they are stealing the American Dream)
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To: TigerLikesRooster
My question is this:
What happens to the dollar on Monday?



4 posted on 08/06/2011 3:57:38 AM PDT by djf (One of the few FReepers who NEVER clicked the "dead weasel" thread!! But may not last much longer...)
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To: TigerLikesRooster

And since he does not own the EU central bank, he will simply be looking at the flames in his rear-view mirror.

Is it any wonder that the smart free enterpriser favors the idea of private ownership ?


5 posted on 08/06/2011 3:59:43 AM PDT by PieterCasparzen (We need to fix things ourselves)
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To: Jimmy Valentine
Exactly correct.

As Mises pointed out,real money comes from the market, it cannot be invented by government.

6 posted on 08/06/2011 4:04:46 AM PDT by fortheDeclaration (When the wicked beareth rule, the people mourn (Pr.29:2))
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To: Jimmy Valentine
...it is axiomatic that bad money drives out good.

...when legal tender laws are in place or when rates of exchange are fixed.

7 posted on 08/06/2011 4:06:15 AM PDT by SeeSharp
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To: djf

I think the dollar will come under pressure, but it is still a safe habor currency. Where else to move money.


8 posted on 08/06/2011 4:14:24 AM PDT by Jimmy Valentine (DemocRATS - when they speak, they lie; when they are silent, they are stealing the American Dream)
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To: djf

I think the dollar will come under pressure, but it is still a safe harbor currency. Where else to move money.


9 posted on 08/06/2011 4:14:42 AM PDT by Jimmy Valentine (DemocRATS - when they speak, they lie; when they are silent, they are stealing the American Dream)
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To: TigerLikesRooster

Remember 4 years ago when they said the EURO would replace the dollar?


10 posted on 08/06/2011 4:16:27 AM PDT by philly-d-kidder (AB-Sheen"The truth is the truth if nobody believes it,a lie is still a lie, everybody believes it")
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To: philly-d-kidder
I am sure that there are angry twisted and bitter souls in Brussels now, watching Euro going down in flames ahead of dollar.
11 posted on 08/06/2011 4:21:31 AM PDT by TigerLikesRooster (The way to crush the bourgeois is to grind them between the millstones of taxation and inflation)
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To: TigerLikesRooster

The core problem with politicians is their faulty belief that they have to ‘do’ something big. Hence the rise and fall of ‘Euroland.’ How refreshing it would be to hear a politician say proudly he would make sure government did less.


12 posted on 08/06/2011 4:25:36 AM PDT by AdaGray
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To: TigerLikesRooster

I can see the Guys with Blue Jeans a Blue blazer Double vented and Black ferragamo shoes pacing and pacing haha


13 posted on 08/06/2011 4:31:21 AM PDT by philly-d-kidder (AB-Sheen"The truth is the truth if nobody believes it,a lie is still a lie, everybody believes it")
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To: TigerLikesRooster
euro builder

the euro is the brainchild of a professor at Columbia whose name I don't recall.

I emailed him sometime around the late '90s or the turn of the century and expressed my concerns about the disruption the euro would cause in the financial order for dollar assets - specifically that competition for capital would drive up US borrowing costs, which I suggested would be ruinous at our level of debt. He replied, basically, "nahhh.."

14 posted on 08/06/2011 6:06:11 AM PDT by _a_0_0_
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To: _a_0_0_
Are you referring to Robert Mundell?
15 posted on 08/06/2011 6:18:12 AM PDT by TigerLikesRooster (The way to crush the bourgeois is to grind them between the millstones of taxation and inflation)
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To: TigerLikesRooster
could be -- even sounds remotely familiar -- ...but like I said...

I'll google him when I have time and see if it rings any bells. thx for the name.

16 posted on 08/06/2011 6:54:18 AM PDT by _a_0_0_
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To: _a_0_0_

Canadian. Father of the Euro. Yet another Nobel Prize Winner, LOL! *SPIT*

http://en.wikipedia.org/wiki/Robert_Mundell


17 posted on 08/06/2011 6:55:43 AM PDT by Diana in Wisconsin (I don't have 'Hobbies.' I'm developing a robust Post-Apocalyptic skill set...)
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To: Diana in Wisconsin

Eh. He did a few good things, too. I guess trashing the economy of a nation balances things out? ;)


18 posted on 08/06/2011 6:57:38 AM PDT by Diana in Wisconsin (I don't have 'Hobbies.' I'm developing a robust Post-Apocalyptic skill set...)
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To: AdaGray
“The core problem with politicians is their faulty belief that they have to ‘do’ something big.”

Yes, and this is because politics selects for people who need to be ‘special’. This is the biggest motivation for most of them, not money or stealth power. They want to be special.

Hillary wanted to change all of health care and go down in history as the architect of a big societal program, like FDR. Bill Clinton's fascination with the presidency started when he was in high school. Obama wants to ‘transform’ America and sees himself as a special person who will impose what he sees as ‘social justice’ on society.

Al Gore went through a major life crisis and emotional meltdown when his delusions of grandeur were crushed by losing the presidential election (he subsequently was able to puff himself back up as the Nobel Prize-winning protector of the world against global warming).

Nancy Pelosi complained this past week that Republicans want to diminish the stature of government. This is very important to her, because anything that diminishes the stature of government diminishes how ‘special’ she is. She isn't motivated by her private jet rides etc. These are nice ‘perks’, but they are not at the core of what drives her. She fulfills her narcissistic need by being at the helm (or at least now part of the crew) of a group that elevates itself by exerting control over the lives of others.

We will not truly fix what is wrong with our nation until we diminish the stature of politicians. Yes, I know that they poll poorly these days, but they are still societal celebrities, and that is unacceptable. They don't invent anything. They don't start businesses and personally create lasting jobs. In general they don't really do much except screw up the lives of the rest of us.

Term limits would go a long way to change the characteristics of those who run for office. Ultimately, however, we need to diminish the stature of politicians in society, and make it clear again that elected office is a temporary public service position.

19 posted on 08/06/2011 6:58:21 AM PDT by pieceofthepuzzle
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To: TigerLikesRooster

Jean-Claude Trichet...this Euro apparatchik will get a nice fat pension so what does he really care. He wrecked Europe and let Muslims invade it same as his fellow Euro-Crats.


20 posted on 08/06/2011 7:25:07 AM PDT by dennisw (NZT -- works better if you're already smart)
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To: Diana in Wisconsin
Guess that's him. Thanks.

Mundell laid the groundwork for the introduction of the Euro through this work and helped to start the movement known as supply-side economics.

Talk about a mixed blessing...

Clearly if he's a supply sider than he is probably an optimist like Leo Melamed.

21 posted on 08/06/2011 4:36:20 PM PDT by _a_0_0_
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